International Tax Advisory Services

Cohen & Grigsby serves a diversified and broad clientele throughout the world, counseling them on a wide range of international matters, including transnational estate and tax planning and compliance, immigration, and inbound and outbound mergers and acquisitions. We augment our professional staff with an international network of attorneys and accountants, through which it is able to obtain quick answers to international legal and tax questions at little or no cost to clients.

International Estate Planning for Foreign Nationals

  • Prepare U.S. wills, trusts (including qualified domestic trusts), powers of attorney, living wills, and estate plans for foreign nationals (resident and nonresident) with U.S. real estate, securities and business holdings
  • Reorganize U.S. investments of foreign nationals, using tax planning opportunities under applicable estate tax treaties and U.S. estate and gift tax laws
  • Probate wills and administer U.S. estates of foreign nationals
  • Coordinate U.S. and foreign estate tax law with estate tax treaties to minimize taxes

Inbound Transactions

The International Tax Advisory Services Group counsels foreign companies and individuals on their “inbound” U.S. investments:

Establishing the appropriate business entity from both legal and tax perspectives

  • Create an offshore holding company with a Delaware branch to finance the U.S. and international operations of a Canadian multinational corporation
  • Structure U.S. limited partnerships to afford foreign investors limited liability, while minimizing their overall tax burden by subjecting the income of the U.S. business to U.S. income tax at individual rates and avoiding foreign tax on repatriation of earnings
  • Use Delaware finance companies to hold the stock of U.S. companies and accumulate income free of state tax

Providing ongoing legal and tax planning

  • Advise foreign manufacturers on the peculiarities of U.S. product liability and environmental laws Protect intellectual property rights, including technological know-how, patents and trademarks
  • Use applicable U.S. and foreign income tax treaties to exploit tax planning opportunities
  • Develop a plan to minimize the branch profits tax and the effect of the “earnings stripping” rules
  • Provide legal counsel on immigration issues involving key executives, managers and skilled employees
  • Assist employers and employees to obtain non-immigrant visas (primarily in the E, H and L categories), labor certification and permanent resident status
  • Obtain “blanket L-1” status for multinational corporations, enabling foreign companies to transfer key employees to their U.S. subsidiaries without proceeding through the INS, reducing the process from six weeks to one day
  • Prepare family-based petitions for immediate family members of U.S. citizens and permanent residents
  • File applications for political asylum and litigate deportation/exclusion trials Counsel employers on various reporting requirements (including those related to Form I-9) and defend employers involved in such litigation

Helping individuals and businesses comply with tax and banking regulations

  • Prepare forms 1040NR (Nonresident Alien Income Tax Return) and 706NA (Nonresident Estate Tax Return)
  • Prepare documentary evidence of compliance with new transfer pricing rules to avoid penalties
  • Advise clients about forms for foreign-owned companies, e.g., Forms W-8, 1042 and 8804 Maintain bank accounts and conduct banking for foreign clients

Outbound Transactions

The group advises many U.S. companies and individuals on their “outbound” foreign investments and on exporting their products and skills such as:

Establishing the appropriate business entity from both legal and tax perspectives

  • Create international joint venture vehicles in South America, Europe and the Pacific Rim
  • Create a global alliance between two producers of the same product from two different countries, including forming joint ventures in the U.K. and Australia and a worldwide joint purchasing and sales company (overcoming objections by the U.S. Federal Trade Commission and receiving approval under the Treaty of Rome)
  • Advise clients on whether to export directly to foreign customers, use an intermediary sales representative or distributor, or establish a foreign branch, taking into account U.S. and foreign tax laws as well as applicable treaties

Providing ongoing counsel for business and tax planning and compliance

  • Assist clients in developing and implementing licensing agreements and joint ventures in Europe, South America and the Pacific Rim countries
  • Structure the ownership and activities of foreign corporations to avoid current U.S. income taxation under “Subpart F” (rules applicable to “controlled foreign corporations”) or under the “foreign personal holding company” or “passive foreign investment company” rules

International Planning

The International Tax Advisory Services Group advises several clients regarding the most appropriate business structures for their worldwide operations, successfully providing them with operational flexibility, access to favorable income tax treaty networks and the ability to consolidate their worldwide income in the U.S. The group has enabled many clients to:

  • Utilize excess cash flow in the markets where investment was needed
  • Employ intellectual property to create cash flow from, and deductible expenses in, high tax jurisdictions
  • Manage transfer pricing adjustment risks
  • Manage import/export duty costs