Thanks to Kerry Reddington for organizing this bipartisan TTFI event jointly hosted by American Chamber of Commerce Germany, Republican Overseas Germany, and Democrats Abroad Germany on September 24. The TTFI legislation passage requires all of us to work together regardless of party affiliation and political spectrum.
On September 21st Joe Smallhoover, board member of the American Chamber of Commerce France and Chair of Democrats Abroad France (DAF), and Solomon Yue, founder of Republicans Overseas (RO), presented the draft bill on territorial taxation for individuals (TTFI) at the American Chamber of Commerce France in Paris.This bill will be presented to Congress this fall, before the end of this session.
Yue began the presentation by saying how much territorial taxation for individuals (TTFI) — also known as residence-based taxation (RBT) — is an American issue, not a Republican, Democrat or Independent issue.
Read more here.
Territorial Taxation for Individuals is receiving endorsements from a variety of organizations that support overseas American taxpayers.
Please see the endorsement letters here:
The House Ways & Means Committee is holding a ‘Hearing Seiries on Tax Reform: Growing Our Economy and Creating Jobs.’ They are collecting statements for the congressional record, and this is a great opportunity to provide testimony as to the unintended and potentially disastrous consequences of the Repatriation Tax and GILTI tax regime. Comments must be submitted by May 30, 2018.
If you would like to submit a testimony about the harm these taxes will do to your business, then you can email a letter to them. The guidelines can be found here (https://waysandmeans.house.gov/committeesubmissions/), but they are also listed below:
You can find a draft letter here: House Ways and Means – Repatriation Tax Sample Letter . Please adjust it to suit your story.
Republicans Overseas submitted a presentation to the White House explaining the Repatriation Tax, why it is so disastrous for overseas Americans, and potential remedies. You can read it here: http://republicansoverseas.com/wp-content/uploads/RO-Transition-Tax-Overview.pdf
Republicans Overseas continues to work towards implementing Territorial Taxation for Individuals. The passage of TTFI would end the double taxation of overseas Americans by ending citizenship-based taxation. The passage of TTFI would also connect individual taxation with corporate taxation by putting both on a territorial basis. We hope to soon share news on proposed TTFI legislation.
Sincerely,
Solomon
Solomon Yue
CEO Republicans Overseas
Solomon Yue, CEO of Republicans Overseas, will be in Hong Kong on May 28, 2018.
Please join us at 6:30 – 8:00 pm for an update on Territorial Taxation for Individuals.
Mr. Yue will discuss his recent visits to Washington, D.C., the progress being made on Territorial Taxation for Individuals, and the impact this would have on businesses owned by overseas Americans. He has been involved with drafting the TTFI bill and will discuss what can be publicly shared.
Please email us for more information if you have not received the invitation.
The meeting is free for members of Republicans Overseas, but costs $20 USD for non-members.
The Department of the Treasury has granted a two month extension for making the first payment of the Repatriation Tax included in the Tax Cuts & Jobs Act of 2017.
The full advice from the Treasury can be read here.
The relevant information on the Repatriation Tax can be found on page 36. A picture of the relevant page is included at the top.
Our understanding is that this extension is granted automatically and without having to apply for it, but we do urge individual business owners to seek professional tax advice if in doubt.
Republicans Overseas thanks everyone who signed a petition, both ours and that sponsored by Monte Silver. We still have more work to do, but we now have a little more time in which to accomplish it.
Republicans Overseas has requested a House hearing on the harmful impact of the ‘repatriation tax’ on the small business corporations owned by overseas Americans.
‘Attached is an RO PPP on the severe and unintended consequences of the repatriation tax contained within the Tax Cuts & Jobs Act 2017 on small businesses owned by overseas Americans.
Since this is a complicated issue, it is easiest to explain it by contrasting the impact of the Tax Cuts & Jobs Act 2017 (‘TCJA’) on Apple stores which are wholly owned foreign subsidiaries of the Apple corporation with independently-owned Apple stores run as small businesses by overseas Americans in Hong Kong.
1) The repatriation tax specified by the TCJA for multinationals’ foreign subsidiaries is 15.5% while it is 17.5% for American-owned overseas small businesses.
2) The Tax Cuts and Jobs Act failed to recognize the differences in Apple company-owned stores and Apple independently-owned stores.
3) Apple brings its foreign company stores’ profits home to the US to open new company stores, create jobs, and increase profitability.
4) Apple independently-owned stores’ owners will not immediately bring home to the US their retained earnings because their profits are used to finance inventory
5) Apple corporate shareholders will pay the 15.5% transition tax on Apple company-owned stores, but these Apple company-owned stores will then pay 0% corporate income tax to the IRS after that due to the implementation of territorial taxation for corporations.
6) Apple independently-owned stores’ individual shareholders will pay the 17.5% transition tax but will still need to pay individual income tax to the IRS every year due to citizenship-based taxation.
7) Apple independently-owned stores’ individual shareholders have been using their retained earnings as working capital to self-finance their businesses due to foreign banks denying them basic banking services, including business loans and lines of credit under FATCA.
8) This 17.5% becomes a triple jeopardy for Apple independently-owned stores’ individual shareholders: they receive no tax credit for payment of the transition tax to US to offset the tax owed to the country of residence; individual shareholders may not have the money to pay this tax; and if the owners use working capital to pay this transition tax, it makes it more difficult to self-finance, which could lead to bankruptcy.
9) The first installment of this tax is due by April 15, 2018.
10) Failure to pay the first installment by April 15, 2018 means that the total tax would be due immediately.
We need to have a House hearing to demonstrate the severe and unintended consequences of TCJA and to allow the House the opportunity to offer timely solutions for the law-abiding overseas Americans who will suffer under this tax.’
You can read the presentation here:
Addressing the harmful impacts of the repatriation tax on overseas Americans
