Greg: This is PKF Texas The Entrepreneur’s Playbook. I’m Greg Price, Director of Consulting Solutions and I’m here again with Frank Landreneau, a director in our international tax practice. Frank, welcome back to The Playbook.
Frank: Thanks, Greg; it’s great to be back.
Greg: So Frank, the last time you were here, we talked about some trends that you’re seeing in the international business.
Greg: So this time, I’d like to drill down just a little bit more. Do you have any specific things you can tell our audience about what you do for international businesses?
Frank: I can, Greg. One of the things that when people are looking to do business outside the US, they’re not exactly sure exactly how much of a penetration in that foreign market they want to have. So for example, many of our clients look to do business through their networks with independent agents and contractors and other clients want to go full-fledged and build a manufacturing facility or have some other permanent type of location in that foreign country.
Greg: So when you have people like agents versus maybe a more permanent approach, are the tax consequences that different?
Frank: Absolutely. If it’s a country that the United States has a treaty with, there could be some limited activities a client can do business and without ever having a tax presence. In other cases, without a treaty, you’re reverted to local country law and so your tax exposure could be a lot greater.
Greg: Wow, that sounds like we need to have some more conversation around tax exposure with these tax treaties. Can we have you back again to talk about that sometime?
Frank: Absolutely, I love to do that.
Greg: Okay the next time you’re back, we’ll talk about tax treaties here on The Playbook.
Frank: All right.
Greg: This has been another Thought Leader Production, brought to you by PKF Texas, the Entrepreneur’s Playbook. Tune in next week for another chapter and remember if you’re looking for resources for manufacturing and distributors, go to pkftexas.com/manufacturing.