Does a US corporation organized under the laws of the US become a "foreign" corporation for IRS purposes if owned by foreign co?
San Diego, CA |
We have a Delaware corp. but it is currently entirely owned by a Chinese company, based on what I've found on the IRS/Treasury website this does not change the fact that the corporation is still considered a "domestic" corporation. Is this true?
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Correct. The Delaware corporation is still considered a domestic corporation for IRS purposes.
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If the goal is to avoid US taxes, I would caution that there are other considerations. For example, those that meet a substantial presence test, green card holders, and US citizens must file US taxes, as well as comply with other reporting requirements (FBAR, FATCA, etc.).