U.S. Tax Advisory and Compliance

U.S. Individual Income Tax

The U.S. citizens and resident aliens are taxed on their worldwide income.

The U.S. nonresident aliens are generally subject to the U.S. tax on income from U.S. sources, with exceptions. This income is divided into two categories:

• Certain investment and other passive income: certain U.S. source income that is not effectively connected with a U.S. trade or business.
• Business income: income that is effectively connected with a U.S. trade or business.

U.S. Corporate Income Tax

Corporate income taxes are imposed by the U.S. Federal government, by most states and by some cities.

All the U.S. domestic companies must file an annual income tax return whether or not they have taxable income derived during the year. Domestic corporations must file Form 1120 unless they are required to file a special return.

A foreign corporation must file Form 1120F, if during the tax year, the corporation derived income from any U.S. sources, which includes for example, gains from the disposal of the U.S. real property interests, even if the corporation was not engaged in a trade or business in the U.S.