Doing business overseas?
Alaska Articles March 3rd, 2009Well, not exactly “overseas” but perhaps in Canada or Mexico?
Many countries are part of the Hague Convention of 1961 which resulted into the apostille coming to existence. Apostille makes the legalization procedure a much easier one, in comparison to to the embassy/consulate authentication. It takes less time as well as it costs less, thus suits best the busy environment of most of the companies and corporations in the Unites States.
How does this relates to Alaska? Simple. Lets say one has a company registered in the State of Alaska and an office in Mexico. The foreign counterpart generates an income in Mexico, however the company is also subject to the U.S taxes. Fortunately, there’s a tax agreement between the United States and Mexico on double taxation. This results in the following: the company applies in the United States for a Residency Certificate which is then apostilled for use in Mexico and “voila” you are set.
Not all countries have such agreements with the United States. And eve those that do have it sometimes have different terms. For instance, in one country you can avoid the double tax completely. In others you may need to pay partial.
Regardless of what is the percentage rate might be, make sure that the country does have such treaty first.
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