From an economic standpoint, Americans are blessed and burdened simultaneously.
They are citizens of one of the world's most dynamic and influential economies, and enjoy abundant employment opportunities and business prospects.
However, the United States is also the sole (major) country that imposes citizenship-based taxation on its citizens. US citizens must file and pay US taxes indefinitely, regardless of their country of residence.
Equally challenging for Americans is the task of reducing business income tax. The IRS levies taxes on the international income of American-owned foreign corporations through the so-called GILTI tax, even if the income hasn't been disbursed as dividends.
Therefore, US taxpayers’ opportunities for reducing taxation are limited. But they still exist.
And no, they don't involve renouncing your US passport.
This report presents a straightforward international structure that allows you to cut your corporate tax rate in half – from 21% to a mere 10.5% – by forming one extra company overseas.
And if you are also willing to relocate overseas personally, your effective corporate tax rate can be slashed even further -- to the mid-single digit range.
This approach primarily benefits those who can postpone dividend distributions until retirement, when lower income levels can translate into reduced dividend tax payments.
In the interim, you can employ various strategies for managing your corporate funds, including reinvesting in your business, or exploring opportunities in real estate, cryptocurrencies, and more.
In economic terms, Americans are blessed and burdened simultaneously. They are citizens of one of the world’s most dynamic and powerful economies and benefit from owning the world’s reserve currency. However, the United States is the only (major) country that subjects its citizens to citizenship-based taxation. This means that US citizens must generally file and…