I am a US citizen and have share holding in a foreign company abroad. What taxes do I or Comany have to pay?

Question

I am a US citizen and have share holding in a foreign company abroad. What taxes do I or Comany have to pay?

Answer 1

As a US citizen, your world wide income is subject to US taxation.  Report the income on your tax return.  Where you report it depends upon the type of income.  If it's corporate dividends, it goes on Schedule B.  If it's capital gains, it goes on Schedule D.  If it's wages, it goes on Form 1040, line 7.

Whether or not the company has any US tax liability depends upon facts not revealed in your question.  There may or may not be any.

There may be additional reporting requirements in addition to reporting the income on your tax return.  If you have signatory authority over any foreign depository or investment accounts with an aggregate value in excess of $10k at any time in any year you will need to file a TD F 90-22.1 report by June 30th of the following year.

Answer 2

You must report worldwide income.

Read:  http://taxipay.blogspot.com/2008/03/us-c...