The Resource U.S. states test limits of economic nexus in global economy

U.S. states test limits of economic nexus in global economy

Label
U.S. states test limits of economic nexus in global economy
Title
U.S. states test limits of economic nexus in global economy
Creator
Subject
Language
  • eng
  • eng
Summary
This article analyses how the use of an economic presence standard for making state income tax nexus determinations impacts foreign corporations doing business in the United States. It is important for foreign corporations that make direct sales to U.S. customers to be aware of the possibility that they may be subject to state income taxes even though they do not have a PE in the United States and therefore their federal taxable income is zero. State income tax nexus determinations are based primarily on the restrictions imposed by the U.S. Constitution and P.L. 86-272. Although these federal restrictions provide important protections and a degree of uniformity in state tax laws, the details of state nexus standards vary significantly from state to state. Consequently, tax practitioners must carefully analyze the tax laws of each state to determine the requisite reporting requirements
Citation source
In: International tax journal. - Riverwoods. - Vol. 45 (2019), no. 4 (July-August) ; p. 47-55
http://library.link/vocab/creatorName
Schadewald, M.S
Geographic coverage
North America
Language note
English
http://library.link/vocab/subjectName
  • nexus
  • foreign company
  • constitutional law
  • case law
  • significant economic presence
  • state tax
  • federal tax
  • PE
  • digital economy
Label
U.S. states test limits of economic nexus in global economy
Link
https://library.ibfd.org/custom/web/SD_PDF/scans/2019/G-I/ITJ/4_47-55.pdf
Publication

Library Locations

    • IBFD Library AmsterdamBorrow it
      Rietlandpark 301, Amsterdam, 1019 DW, NL
      52.3736660 4.9336932
Processing Feedback ...