In this country where federalism is a concrete reality, two main legal systems exist side by side: that of the federal state and that of each state. Taxes are payable at the federal level, and sometimes also at the level of local authorities. From a legal standpoint, the choice of where to set up a company structure is important. EXCO US Atrium supports companies in the specific procedures for the regulatory framework applicable in the United States, by optimizing their taxation.
French – American tax treaties
France and the United States are bound by two tax treaties the common purpose of which is to avoid double taxation and prevent fraud and evasion. This concerns, on the one hand, the convention of 24 November 1978 relating to free transfer rights due in the event of inheritance or donation and, on the other hand, the convention of 31 August 1994 relating to taxes. on income and wealth.
The main provisions of the tax treaty between France and the United States in terms of direct taxes.
- Annual corporate tax declarations: Federal, State and City level
- Sales tax declaration (which corresponds to VAT)
- Transfer Pricing Studies
- Annual tax returns in the USA
Form W-8BEN: Download
This form is used by foreign entities to establish their status for the purposes of chapters 3 and 4 and certain other provisions of the Code, as described below in these guidelines. Foreign persons are subject to a US tax of 30% (withholding rate applicable to persons
foreign) on U.S. source income of types
• interest (including certain share premiums [OID]);
• remuneration for services rendered or to be rendered;
• substitution payments in a loan transaction
of titles; or
• other annual or periodic earnings, profits or income,
fixed or determinable.
This tax applies to the gross amount paid and is generally collected by means of withholding under section 1441 or 1442. A payment is deemed to have been made if it is paid directly to the beneficial owner or to another person. , such as an intermediary, agent, or partnership, for the benefit of the beneficial owner.In addition, under section 1446, any partnership that carries on business in the United States must withhold
tax on the portion of its effectively related taxable income accruing to a foreign partner. Generally, a foreign person meets the documentary requirements of section 1446 if they are a partner in a partnership that files a W-8 form for the purposes of
Article 1441 or Article 1442. However, in some cases, the documents required under Articles 1441 and 1442 differ from those required under Article 1446. Refer to Articles 1.1446-1 to 1.1446-6. In addition, the owner of an entity equivalent to its owner must submit
itself, in lieu of the entity, the appropriate Form W-8 for the purposes of section 1446.