Certified Corporate Translation and Double Taxation

Financial Translations of Foreign Tax Documents

Certified corporate translation and financial translation services play an important role in avoiding double taxation. In the global workplace, one issue that is always a stress for the expatriate employee is taxes and understanding who gets paid what. For instance, countries often impose withholding taxes on nonresidents income for the performance of services sourced within that country.

(The US imposes a 30% withholding tax on US source payments for services to nonresidents). However, some countries take this a step further and impose withholding taxes on payments for services to nonresidents regardless of where the actual service is performed. In these instances, double taxation is a real threat.

Some countries avoid double taxation through such statutory measures as a tax credit. For example, in the US there is a foreign tax credit for all foreign income taxes paid. Another solution can be found in a tax treaty agreed two by two countries with the aim of avoiding double taxation. However, to know whether either of these options exists, and to understand what tax obligations one has to both their home country and their country of residence, a foreign language translation of all statutes and regulations is required.

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