GM TAX CENTER
The disposition of a U.S. real property interest by a foreign person (the transferor) is subject to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) income tax withholding. FIRPTA authorized the United States to tax foreign persons on dispositions of U.S. real property interests.
A disposition means “disposition” for any purpose of the Internal Revenue Code. This includes but is not limited to a sale or exchange, liquidation, redemption, gift, transfers, etc. Persons purchasing U.S. real property interests (transferees) from foreign persons, certain purchasers' agents, and settlement officers are required to withhold 15% (10% for dispositions before February 17, 2016) of the amount realized on the disposition (special rules for foreign corporations).
In most cases, the transferee/buyer is the withholding agent. If you are the transferee/buyer you must find out if the transferor is a foreign person. If the transferor is a foreign person and you fail to withhold, you may be held liable for the tax. For cases in which a U.S. business entity such as a corporation or partnership disposes of a U.S. real property interest, the business entity itself is the withholding agent.
What is an ITIN used for?
ITINs are for federal tax reporting only, and are not intended to serve any other purpose. IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security Numbers (SSNs).
An ITIN does not:
• Authorize work in the U.S.
• Provide eligibility for Social Security benefits
• Qualify a dependent for Earned Income Tax Credit Purposes
​
To apply for ITIN and start doing business in USA simply
1 Fill out the attached form and e mail it back to mike.samir@gmtaxcenter.com a long with copy of your valid passport
2 Once we receive the info we will prepare the paperwork and you need to sign them and e mail them back to us
3 The process take up to 8 weeks to receive the ITIN
​
for more info please visit https://www.irs.gov/individuals/individual-taxpayer-identification-number
