What are the tax implications for foreign investors in a US deal?

by a searcher from Harvard University - Harvard Business School

2 years ago

Does anyone know what the tax implications of investing in a self-funded deal in the USA are for investors outside of the US (in particular from the UK or Europe)? How does the process look like? Are the gains taxed the same way they are for a US-based investor? Can the UK investor repatriate the potential gains without paying any additional taxes?

Thank you!!

Julio

1 like
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5 comments

professional from University of Minnesota - Twin Cities Campus

Thanks for tagging, Luke

2 years ago | like reply | 0 likes

professional from Walsh College of Accountancy and Business Administration

I will summarize it as it is complicated. The investor should seek their own tax advice on how they invest in the U.S. and then you have the U.S. tax rules on how to treat the foreign investors, including but not limited to annual information reporting and tax withholdings based on the tax treaty with their country. Failure to comply with the reporting in the U.S. can get very expensive with penalties of $10,000 per missed information reporting form. Make sure you are using a tax advisor that is experienced in this area.

2 years ago | like reply | 2 likes

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