California would be a key player in the international market if it were a country. There are debates about whether it is the world’s 4th, 5th, or 6th largest economy. Many experts say that’s not the truth, and these claims are just an attempt at good PR for the Golden State.
We could crunch the numbers, but we need that time to serve our clients. One thing is sure, if you are an international citizen and currently live or have a business in California, you must pay taxes. And if you are a foreign resident, you are not alone.
The Public Policy Institute of California (https://www.ppic.org/wp-content/uploads/jtf-immigrants-in-california.pdf) notes our state has more immigrants than any other nationwide. It is home to 23% of the foreign-born population in America. And these populations are mostly in coastal metropolitan areas, with the majority living in the San Francisco Bay Area. This would make sense. The Bay Area is known for its abundant melting pot of cultures and worldwide diversity. If you want the best Asian cuisine, few states can top the Bay Area for Chinese, Japanese, Thai, or Indian fare. When someone is looking for a unique cultural experience in entertainment, Bay Area symphonies, opera houses, and playhouses foot the bill.
We believe the world has had a longtime “affair” with the City of San Francisco. Unsurprisingly, international visitors decide the put down roots and start businesses in our lovely City by the Bay.
Yes, non-Californians can be taxed on all California-sourced income
Everyone must pay taxes, whether U.S. citizens, immigrants, or foreign nationals. Income can be in the form of a paycheck, investments, and rental properties, to name a few. And if a global citizen runs a business here, they will have to deal with California’s complicated tax code, making filing a yearly tax return a perplexing chore. Paying U.S. taxes isn’t something to get wrong. In the worst cases, it could impact a person’s ability to continue living and doing business in the United States. As one of the best CPA firms in California for international taxation issues, we can handle these issues.
We’ve worked with citizens from all over the globe in countries like United Arab Emirates, Germany, Scotland, Japan, and Canada. We also support business owners and citizens of Latin America and Asia.
And if you’re a Californian with overseas investments, you also need support from a CPA who can handle international taxes. California residents aren’t only taxed on state income but all types of worldwide income sources. Here are a few areas our Safe Harbor accountants specialize in:
- Filing of FBAR – Foreign Bank and Financial Accounts (https://www.safeharborcpa.com/international-tax/)
- Expatriation Tax
- Foreign Earned Income Exclusion
- Offshore Accounts and Foreign Assets
Stay out of the weeds and contact the best CPA firm in California for international taxation issues
Yes, Safe Harbor CPAs can expertly handle international taxes. We also have a list of other services to help foreign and domestic citizens remain compliant with the IRS all year long. For instance, International high-net-worth individuals benefit from monthly accounting and reconciliation practices. Let’s create a plan for quarterly tax filings. The goal isn’t just to manage global tax issues in California, it’s to help our clients leverage their returns for the best outcomes. This means that U.S. citizens and non-citizens; pay less in taxes and receive more in returns.
We work to simplify the global tax return process as much as possible. U.S. legislation constantly changes, and those outside the accounting realm can need help to keep up. It’s our job to inform our clients of the facts without overwhelming them.
Here is a great blog post from the Tax Foundation sharing the challenges of international tax rules and current efforts to reduce regulations and red tape: https://taxfoundation.org/blog/decluttering-international-tax-rules/. The article shares the 2023 State Business Tax Climate Index and notes the best and worst states. Unfortunately, California ranked as one of the worst, with poorly structured individual income taxes and aggressive treatment of international taxes. This is the type of environment where an expert CPA can make a big difference!
If business brings you to California, and if you’re international, let’s talk. Contact us if you’re a global citizen who’s decided to put down roots in the Bay Area. We can help both businesses and individuals with international tax issues.