business tax on foreign operations

Jan 25, 2007 1 Replies

This question is partly about import duties, if anyone has a suggestion for a better group to post this, thanks in advance. This came up during a lunch discussion (politics) among friends, I hope someone here can clarify some points. When I buy a product in the US of which label says made in , then import tax had to be paid on it, correct? Someone suggested that if the US company opened a factory abroad and brought the product back that would be treated differently for tax and import purposes than if it simply imported said product from a foreign business entity producing the product abroad. Thanks. Matyas



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Well I can comment from a tax perspective. If you are importing from a related company yoj might have transfer pricing concerns.

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