Below is a general outline of the different types of corporate income taxes that a company doing business in the United States and specifically in the State of Florida, could be liable for

STATE OF FLORIDA TAXES 

Sales Tax:  7.0% tax on gross retail sales (made to the general public) within Dade County.  In general, sales made to wholesalers, distributors or for export out of the State, are exempt.  This return must be submitted to the State by the 20^th of the succeeding month for the sales of preceding month, even if there are no taxable sales.

Unemployment Tax:  2.7% unemployment tax (or a lower rate if the Company has been in existence) on the first $7,000.00 of wages per each employee per year.  This tax is paid by the Company and not deducted from the employee.  This return along with the mount of the tax due is submitted at the end of each quarter.

Intangible Tax:  .20% (.002) tax on intangible assets of the Company’s (accounts receivables trade, loan receivable from within Florida) and also on the equity value of the Company.  The equity value of the company is adjusted for equity belonging to Non-Residents of the Sate of Florida.  This return is filed at the end of each calendar year, and due by June 30.

Income Tax:  5.5% income tax on the amount of Net Profit over $5,000.00.  This return is due within 3 months after the end of the accounting year of the Company.  Any tax estimated to be over $2,500.00, must be paid in quarterly installments throughout the accounting year of the Company.

Annual Report:  Annual fee of $150.00 to the Secretary of State.  This report serves to notify the State, who are the directors and/or officers of the corporation, and also of the existence of the corporation.  This report is filed on January 1^st of each year, due by May 1^st.  

FEDERAL TAXES

Unemployment Tax:  .8% (.008) unemployment tax on the first $7,000.00 of wages per each employee per year.  This tax is paid by the Company and not deducted from the employee.  This return is filed at the end of each calendar year, but the tax must be paid on a quarterly basis when it exceeds $100.00.

Social Security Tax:  6.2% tax on each employees wage up to a maximum of $72,600 in the year.  This tax is also deducted from the employees wages along with their withholding income tax, and remitted to the Internal Revenue Service via Federal Depository Institution.  If the amount of the aforementioned payroll taxes are more than $500.00 at the end of the month, the Company has until the 15^th day of the succeeding month in order to deposit them.  If the amount exceeds $3,000.00, the Company has 3 banking days in order to deposit them.  This return must be filed on a quarterly basis.

Medicare Tax:  1.45% tax on each employees wages with no limit on the amount of taxable wages in the year.  All the other conditions of the aforementioned Social Security Tax apply here also, including the filing requirements.

Income Tax:  The Corporate Income Tax is based on the amount of the Net Profit that falls in the following brackets and corresponding rates:

This return must be filed at the end of the accounting year of the Company, and due within 2 ½ months after the Company’s year end.  Any taxes estimated to be due, must be paid in quarterly installment throughout the accounting year of the Company.

F.I.R.P.T.A. Withholding:  This tax applies on payments to non-resident aliens (whether corporations or individuals).  The tax is a flat 30% and calculated on payments made to non-resident aliens for services performed in United States, dividends paid on retained earnings of the Company to the foreign entity, or interest paid on loans made to the Company by the foreign entity.

INFORMATION RETURNS (need to be filed)  

Form W-2 Wage & Tax Statement to report wages and taxes withheld for employees, due by February 28^th for the previous calendar year.

Form 1099 Miscellaneous Income to report payment of $600.00 or more during the calendar year to individuals for services rendered, due by February 28^th for the previous calendar year.

Form 5472 Information Return of a 25% Foreign U.S. Corporation to report ownership by foreigners who own 25% or more of the stock of a U.S. company, due 2 ½ months after the close of the tax year of the company.

Form 8300 Report of Cash Payment Over $10,000 Received in a Trade or Business to report cash received of more than $10,000 in one transaction or two or more related transactions.

INFORMATION RETURNS (do not need to be filed):

Form W-4 Employees Withholding Allowance Certificate used by employees to report to the employer of the amount of federal income taxes to deduct from their wages.

Form W-9 Request For Taxpayer Identification Number used by companies to obtain the social security number or federal employer identification number from individuals who are paid $600.00 or more.

I-9 Employment Eligibility Verification used by employer to verify whether employee is legally authorized to work in the U.S.

LOCAL TAXES & LICENSES

Tangible Personal Property Tax:  This tax, which is due in Dade County, is a tax on the value of the fixes assets (furniture, office equipment, computer, ect.,) of the Company, known as a tangible personal property tax.  This tax is paid in November of each year, based on information which is filed with the County on a calendar year basis, due by April 1^st.

Occupational Licenses:  Occupational licenses are required from all business’ located in the County of Dade, and if the business is located within the limits of an incorporated city, they too require occupational licenses.  They renew every year on October 1^st.

There is an issue in reference to the transactions that occur between the U.S. Company and its Foreign Parent Company which needs further research and discussion.  Briefly, Internal Revenue Code Section 482 deals with allocation of income and deductions, by placing a controlled company on the same tax level with taxpayers that is not controlled, by determining the true taxable income of the controlled company.  The Internal Revenue has the authority to do the aforementioned in order to prevent evasion of taxes or to accurately reflect true taxable income.

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Overseas Tax Associates

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