The current scenario is such that we have Indians settled in USA and US expatriates in India. Tax statuses in both countries give rise to certain reporting requirements which must be met under specific laws in both countries and these are not just income tax regulations. While the US has specific compliance requirements with regard to foreign assets, gifts received by US citizens/residents, gift and estate tax etc, India has compliance requirements with reference to transactions/remittances in foreign currency, FEMA (Foreign Exchange Management Act) regulations, etc.
Owing to globalization, the importance of FBAR (Foreign Bank Account Reporting) compliance in USA and FEMA in India has increased manifold.
GKM offers clients the following special services:
- FBAR help (Foreign Bank Account Reporting) & FBAR tax consulting
- Advisory on investments in foreign companies/partnerships by US citizens
- Reporting of foreign gifts on Form 3520 in USA
- PFIC investments and related reporting on Form 8621
- Establishing WOS in USA / India
- Offshore voluntary disclosure programs
GKM has senior professionals who provide consultation on specific situations covered by FEMA (Foreign Exchange Management Act) and related compliance requirements of RBI (Reserve Bank of India) As businesses go global the list of these compliances has gone up. Foreign investment in India or investment overseas by resident Indians, both are subject to various compliance requirements. The cost of non-compliance and resultant penalties are also high. GKM ensures clients stay compliant by filing relevant reports as and when required. This particular section of our services is especially built to cater to Non Resident Indian populace. Our experts specialize in regulations and compliances as applicable to Non-Resident Indians to enable them to provide this niche service.
GKM can also assist clients in the following FDI (Foreign Direct investment) matters:
- Investment & Tax Advisory & compliance with RBI & foreign exchange stipulations
- Applying to Reserve Bank of India under various FEMA and RBI regulated transactions
- Advisory services related to FEMA / RBI matters
- Allotment of shares to non-residents
- Transfer of shares from Indian resident(s) to non-resident(s)
- Setting up Partnership / Partnership by NRIs or persons of Indian origin
- Complete FEMA compliance
GKM helps clients with W8BEN filing requirements. W8BEN (Individuals) or W8BEN E (Corporations) is needed to be submitted to payer, if a non-resident alien receives payments from US entities. The present structure of business is such that many resident Indians work from India for US Corporations or have businesses in USA wherein they are partners or shareholders. The payer may rely on the W8BEN to establish that a foreign (Non-US) person beneficially owns the amount being paid and may further rely on the W8BEN or W8BEN E to apply a reduced rate of withholding or exemption from withholding at source. Generally, foreign persons are subject to US tax at 30% on income from US sources.
While the form has wider implications and applicability to different types of institutions, GKM helps individuals and corporates with various W8BEN documentation and submission requirements.
To discuss further,
3511 Silverside Road,
#105, Wilmington, DE 19810