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

searcher profile

May 26, 2021

by a searcher from Harvard University - Harvard Business School in Boston, MA, USA

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
5
68
Replies
5
commentor profile
Reply by a professional
from Walsh College of Accountancy and Business Administration in Detroit, MI, USA
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.
commentor profile
Reply by a professional
from University of Illinois at Chicago in Deerfield, IL, USA
Julio - I've prepared on couple of white papers on the topic, including a US primer for foreign investors. Please contact me at redacted
commentor profile
+3 more replies.
Join the discussion