Introduction
Foreigners making investments or doing business in Washington State will be subject to federal, state and local taxation both in Washington and in other states where they have business activities. This chapter summarizes the federal taxation of international business and investment transactions. State and local tax issues are covered in other chapters of this book.
Business transactions may be entered into by individuals, corporations, estates, trusts or other types of unincorporated business entities. However, corporations play a predominate role in international business transactions. Accordingly, this chapter will focus on business transactions made by corporations. U.S. taxation of individuals and non-corporate entities are similar to that of corporations, so many of the concepts discussed in this chapter will apply similarly to these transactions. The final section of this chapter will briefly address some of the major differences between the taxation of corporations and the taxation of pass-through entities.
Business transactions may be entered into by individuals, corporations, estates, trusts or other types of unincorporated business entities. However, corporations play a predominate role in international business transactions. Accordingly, this chapter will focus on business transactions made by corporations. U.S. taxation of individuals and non-corporate entities are similar to that of corporations, so many of the concepts discussed in this chapter will apply similarly to these transactions. The final section of this chapter will briefly address some of the major differences between the taxation of corporations and the taxation of pass-through entities.