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Tax Implications of International Joint Ventures: Federal and State Tax Issues, Deal Points, Tax Treaties, Planning

Recording of a 90-minute premium CLE/CPE video webinar with Q&A

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Conducted on Thursday, September 7, 2023

Recorded event now available

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This CLE/CPE webinar will provide tax counsel and advisers an in-depth analysis of the U.S. tax implications of international joint ventures and partnerships. The panel will discuss key federal and state tax considerations and pitfalls to avoid, key tax provisions and deal points when structuring an international joint venture or partnership, and planning techniques. The panel will also provide a deep dive into the ability to benefit from tax subsidies and tax credits, tax treatment of goodwill and any contributed intangibles, and tax implications of capital, interest, dividends, and royalties.

Description

Tax considerations for international joint ventures require a detailed understanding of complex federal tax statutes, rulings, and regulations as well as a basic understanding of the fundamental tax rules of other jurisdictions and tax treaties. Tax counsel and advisers must recognize critical tax issues regarding each stage of the joint venture from formation to cessation.

The focus of this presentation will be on joint ventures between U.S. and foreign enterprises engaged in multinational activities in each other’s jurisdictions as well as in third country markets.

We will examine various types of structures, including a jointly-owned corporation serving as a holding company, forms of parallel ownership, and joint ventures that are treated as partnerships for U.S. tax purposes. In examining these various structures our focus will include minimization of excessive withholding taxes which result from “sandwiching” a company resident in Country A between two companies resident in Country B. We will also examine certain equalization arrangements utilized to minimize distributions otherwise subject to withholding taxes.

We will discuss the most important tax considerations applicable to each joint venture participant with respect to the formation of the joint venture (including any transfers of intangibles) as well as the ongoing tax treatment of the joint venture’s operations and its eventual unwinding.

U.S. residents are generally entitled to the benefits of tax treaties entered into between the U.S. and various other nations. Likewise, a foreign enterprise may also be the beneficiary of such treaties. We will consider the impact of the overall structure as well as the type of entity holding the joint venture so that tax treaty benefits are preserved for each enterprise through it's a chain of ownership.

Finally, the panel will cover tax reporting with respect to the joint venture’s financial results. This will include a discussion with regard to country-by-country tax reporting.

Listen as our panel discusses the federal and state tax considerations and essential tax provisions and deal points when structuring an international joint venture or partnership. The panel will also provide insight for utilizing tax subsidies and tax credits, tax treatment of goodwill and any contributed intangibles, and tax implications of capital, interest, dividends, and royalties.

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Outline

  1. Structuring options and key tax considerations
  2. Tax planning tools and pitfalls to avoid
  3. Detailed tax distribution considerations and how to draft for them
  4. Tax implications of capital, interest, dividends, and royalties
  5. Best practices for tax counsel and advisers

Benefits

The panel will discuss these and other key issues:

  • What are the structuring options and key tax conisderations for cross-border joint ventures and partnerships?
  • What are the key tax considerations and necessary provisions for joint venture and partnership agreements?
  • What tax planning tools are available and how do they interact with joint venture and partnership operations?
  • What are the tax implications of capital, interest, dividends, and royalties?
  • What benefits, if any, may be available under a given tax treaty?

Faculty

Fortuna, Julian
Julian A. Fortuna
Partner
Greenspoon Marder

Mr. Fortuna is a partner in Greenspoon Marder’s Corporate & Business practice group. With over 30 years of...  |  Read More

Guadiana, James
James A. Guadiana
Partner
Greenspoon Marder

Mr. Guadiana is a partner in the Tax practice group at Greenspoon Marder LLP. He is an experienced practitioner in...  |  Read More

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