International Cmopliance| RightTaxMate

INTERNATIONAL COMPLIANCE

Indian origin or Indian national currently settled in US, would always want to bring their money to US. It’s not as simple as just doing bank transfer of the money as India tax law requirements are to be complied with before money can be moved out of India bank account. Reserve Bank of India also has stringent rules with regard to outward remittances. RightTaxMate understands the repatriation process well. We assist with providing advice to comply with India tax laws before funds can be repatriated and also required certification for the fund transfers. Reach out to our professional consultants to understand more.

PFIC

As a (U.S.) shareholder in a company categorized as a Passive Foreign Investment Company (PFIC), you have an obligation to submit a PFIC statement. RightTaxMate Group will prepare this statement for investors, making sure that your PFIC statement is perfect and according to the latest tax requirements.

What is a PFIC?
From a USA viewpoint, a PFIC is a foreign-based company that meets one of the following two standards:

Income test

At least 75% of the company’s gross income is derived from investments rather than from a company’s regular business operations.

Asset test

At least 50% of the company’s assets comprise of investments producing income as earned interest, dividends or capital gains.

Why should you let us handle your PFIC statement?

When investing in a PFIC, each tax year, a PFIC statement must be filed with the IRS. RightTaxMate, in close collaboration with a U.S.-based tax advisor, has the framework in place to prepare your PFIC statement in a short and efficient time frame. This will permit you to meet your tax reporting deadlines with a minimum of hassle.
Currently, RightTaxMate administers CLO/CDO structures and actively works with the majority of Investment Managers, Collateral Administrators, Trustees and Arrangers. As Corporate Service Provider and Director of these transactions, we have thorough knowledge about the investments and related transactions required to efficiently and steadily prepare your PFIC statements. At least 50% of the company’s assets comprise of investments producing income as earned interest, dividends or capital gains.
We examine all income including the so-called phantom income of a PFIC which needs to be reported to the IRS under the Qualified Electing Fund (QEF) election. In accordance with US tax regulations. RightTaxMate will derive the phantom income by calculating the pertinent income items as listed below:
- Gains and losses
- Amortization
- Accrued income
- Interest Income deferred to Note Principal Payment

Our offerings:

Retrieving of relevant data - cash flow data and monthly reports from the Trustee
Liaising with the Investment Manager where needed.
Running the data through our proprietary, proven and state-of-the-art software system to produce a balance sheet as well as a profit and loss statement for US tax reporting purposes.
Preparing the PFIC statement and the related tax forms such as Form 5471

REPATRIATION PROCESS

With the 2017 Tax Cuts and Jobs Act (TCJA), US owners of foreign businesses became subject to a one-time transition tax called the Transition Tax or the Repatriation Tax (IRC Section 965). Some businesses missed reporting the tax altogether. Other businesses filed before detailed guidance was available. As a business owner, you may find yourself needing to correct past tax returns.

We can help
We’ve monitored the Repatriation Tax legislation since it was inaugurated and have been rendering the service to individual and businesses. During the 2017 tax preparation season, we prepared numerous Repatriation Tax calculations for clients with various scenarios. Since then, we have assisted clients with late filing of the Repatriation Tax, as well as amended calculations. We are well versed in this area and work with individuals, business owners, and other tax experts on this matter.

Beyond the repatriation tax
Together with the one-time Repatriation Tax, the TCJA introduced an annual Global Intangible Low-Taxed Income (GILTI) tax. This tax is assessed annually at a rate of up to 37% per year. Whereas the Repatriation Tax made sure businesses were fully taxed on prior years’ earnings, the GILTI tax seeks to ensure that businesses pay sufficient tax on their foreign earnings each year going forward.

At RighTaxMate:

We help our clients who are now subject to GILTI understand how the tax law changes have affected their total tax.
And then, we help them identify the one-time changes they can make to optimize their tax position under the new laws.

Non-Resident Indian repatriation services
NRI having immovable assets in India which they had acquired when they were residents. They may also have inherited such assets or received them as gifts. If an NRI doesn’t plan to return to India and visits the country infrequently, he may find the management of these assets difficult. In that case, he may be eager to dispose them and repatriate the proceeds. Returns from investments made in financial instruments may also need to be repatriated.

Whenever money is being remitted by a Non-Resident India, from India to outside India, we provide the certificate require in Form 15 CB that need to submit along with form 15CA online at the income tax department’s website.
To be able to repatriate proceeds, RightTaxMate will assist and guide you on the documentary evidence supporting your acquisition or inheritance of any property.

Money from sale of property in India
Money in the bank account saved while working in India.
Rental income accumulated in the bank account.
Gift from parents or relatives etc.

We, at RightTaxMate understands the repatriation process well. We assist with providing advice to comply with India tax laws before funds can be repatriated and also required certification for the fund transfers. Reach out to our professional consultants to understand more.

INDIA TAX RETURN

RightTaxMate are professional tax advisory based in the USA offering a range of tax, accounting and advisory services in India for non-resident Indians and non-Indian residents. We are sustained by firms of chartered accountants in major Indian cities that can help and advice on a variety of Indian tax, accounting and regulatory issues for:

We provide personal tax assistant with:

Individuals based in the USA and other countries, and
For persons of Indian origin like non-resident Indians (NRI) and overseas citizens of India (OCI)

Permanent Account Number (PAN) card
A PAN is a tax reference number issued by the Income tax authorities in India required practically for everything that a non-resident intends to do in India such as:

Opening a bank account
Opening a dematerialized account (Demat account for trading in stocks and securities)
Filing tax returns
Paying tax to the government
Making investments
Disposing off investments

We are specialist at what we do

We could help right from obtaining a PAN card through to alleviate adverse tax consequences arising out of investments in and disposal of stocks, property and savings in India.
We would take you through the entire process right from helping you fill out the forms to liaising with the tax authorities in India till you get the PAN card at your address back in the USA.
We would provide advice on a range of Indian laws starting with tax laws like Income Tax, Capital Gains Tax (arises when gains are made on a disposal of investments in stocks, mutual funds and other securities, property etc) and Wealth Tax. Typically our advice would cover:
- Both the Indian and the US tax consequences of a transaction carried out in India together with withholding tax implications on repatriation of funds.
- Detailed advice on regulatory compliance requirements to be met in India, particularly that of the foreign exchange laws.
- Identifying tax planning opportunities and devising tax-efficient structures where relevant and applicable
We would also help returning Indians with appropriate tax planning advice and guidance besides managing their tax affairs back home in India on an ongoing basis.

Our services
Normally, for USA residents, we would combine the USA and Indian tax services so that our clients could expect a concise, constructive advice through a single point of contact here in the USA without having to engage with two different sets of advisors.

Our services include the following:

Determination of residential status in India for foreign residents
Structuring tax-efficient compensation packages in India
Filing tax returns in India and in the USA
Liaising with the tax authorities in India and the USA
Liaising with other regulatory authorities in India
Help you get tax refunds in India
Help you open a bank account in India
Help you obtain approvals in India, if required for remittances made to the USA
Issue accountant’s tax certificates where required
Draft agreements, deeds and documents
Obtaining a tax exemption certificate in India: in eligible cases a tax exemption certificate entitles you to zero or a lower rate of tax in India
Obtaining an Advanced Ruling for a specific transaction: advanced rulings help you plan your tax liability for a particular transaction and is binding on the tax authorities in India.

FBAR / FATCA

RightTaxMate offers international compliance solutions, advice and support to clients both locally and overseas. We have years of experience in international compliance, FACTA, and FBARS, supporting companies to comprehend laws and regulations, creating, implementing and managing compliance solutions. RightTaxMate will help you navigate the challenges of operating in different countries, making sure you remain conscious of and act in accordance with legal requirements.

FBAR
The FBAR is an enormous tool to help the United States government recognize persons who may be using foreign financial accounts to evade United States law. Investigators use FBARs to help identify or trace funds used for unlawful purposes or to identify unreported income maintained or generated abroad. If you possess signature authority or share financial interests in a foreign financial account, the Bank Secrecy Act requires you to submit annual account reports to the Department of Treasury. The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. At RightTaxMate, we specialize in foreign bank account reporting. We have years of experience in FBAR filings.

Who must file
A United States person, including a citizen, resident, corporation, partnership, limited liability company, trust and estate, must file an FBAR to report:

A financial interest in or signature or other authority over at least one financial account located outside the United States if
The aggregate value of those foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

Generally, an account at a financial institution located outside the United States is a foreign financial account. Whether the account produced taxable income has no effect on whether the account is a “foreign financial account” for FBAR purposes.

Choose RightTaxMate FFBAR services

Our team understands the significance of maintaining the confidentiality and security of your foreign financial accounts' information. That’s why we only share and receive information from you through a private cloud platform. We utilize the same security encryption as most banks use.
RightTaxMate continually strives to make it easy for our clients to get their FBAR filings done.
You can count on our Tax Associates and IRS enrolled agents to work directly with you through the entire reporting process, and beyond!

FATCA
The Foreign Account Tax Compliance Act (FATCA) is an important development in U.S. efforts to combat tax evasion by U.S. persons holding accounts and other financial assets offshore. Under FATCA, certain U.S. taxpayers holding financial assets outside the United States must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets. There are serious penalties for not reporting these financial assets. This FATCA requirement is in addition to the long-standing requirement to report foreign financial accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR)

FATCA will also require certain foreign financial institutions to report directly to the IRS information about financial accounts held by U.S. taxpayers or by foreign entities in which U.S. taxpayers hold a substantial ownership interest. The reporting institutions will include not only banks, but also other financial institutions, such as investment entities, brokers, and certain insurance companies. Some non-financial foreign entities will also have to report certain of their U.S. owners.

If you set up a new account with a foreign financial institution, it may ask you for information about your citizenship. FATCA provides special (and lessened) reporting requirements about the U.S. account holders of certain financial institutions that do not solicit business outside their country of organization and that mainly service account holder's resident within it. In order to qualify for this favorable treatment, however, the local foreign financial institution cannot discriminate by declining to open or maintain accounts for U.S. citizens who reside in the country where it is organized.

Specified foreign financial assets

Specified foreign financial assets include foreign financial accounts and foreign non-account assets held for investment (as opposed to held for use in a trade or business), such as foreign stock and securities, foreign financial instruments, contracts with non-U.S. persons, and interests in foreign entities.

Reporting thresholds
Reporting thresholds vary based on whether you file a joint income tax return or live abroad. If you are single or file separately from your spouse, you must submit a Form 8938 if you have more than $200,000 of specified foreign financial assets at the end of the year and you live abroad; or more than $50,000, if you live in the United States. If you file jointly with your spouse, these thresholds double. You are considered to live abroad if you are a U.S. citizen whose tax home is in a foreign country and you have been present in a foreign country or countries for at least 330 days out of a consecutive 12-month period.

Taxpayers living abroad

You must file a Form 8938 if you must file an income tax return and:

You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $400,000 on the last day of the tax year or more than $600,000 at any time during the year. These thresholds apply even if only one spouse resides abroad. Married individuals who file a joint income tax return for the tax year will file a single Form 8938 that reports all of the specified foreign financial assets in which either spouse has an interest.
You are not a married person filing a joint income tax return and the total value of your specified foreign financial assets is more than $200, 000 on the last day of the tax year or more than $300,000 at any time during the year.

Taxpayers living in the United States

You must file Form 8938 if you must file an income tax return and:

You are unmarried and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year.
You are married filing a joint income tax return and the total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year.
You are married filing separate income tax returns, and the total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. For purposes of calculating the value of your specified foreign financial assets in applying this threshold, include one-half the value of any specified foreign financial asset jointly owned with your spouse. However, report the entire value on Form 8938 if you are required to file Form 8938.

We are FBAR/FATCA experts

We can take away your worry and fear. We know the IRS system. We can settle your case! We are affordable, assessable and reliable.
We have years of professional tax experience and years of direct work experience at the IRS in the local, district and regional offices of the IRS.