Welcome to the February edition of the TABS business update. As we navigate the first quarter of the year, this issue brings a wealth of insights and guidance tailored for your US subsidiary’s success in the dynamic American market. Topics covered are taxes, HR, compliance, office space, podcasts, and an attractive discount offered by citizenM hotels. Also, please mark your calendars for the webinar on transfer pricing.This year holds great promise and many uncertainties with the upcoming presidential elections in the U.S. this November; our focus remains on supporting your success in the ever-evolving U.S. market landscape. On behalf of the entire TABS Team,
Jacob Willemsen | | |
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| Deadline Corporate Income Tax 2023 Attention LLCs and C-corporations with foreign owners! Income tax filings are due March 15th for some LLCs and April 15th for C-corporations. At TABS, we’re here to streamline your tax season. Let us help prepare the necessary figures and documentation needed for filing. We’re working with our network of third-party CPAs or collaborating with your chosen CPA to ensure that a comprehensive approach meets your specific needs. Need to file on time, or are you considering a 6-month extension? Requests for extensions, with extended deadlines in September/October, must be filed by the original deadline, accompanied by the payment of any tax liabilities. When filing an extension request, TABS and your CPA do require estimated financials even if they are not 100% correct yet. It’s crucial to note that an extension request will be retroactively deemed invalid if it’s later discovered that less than 90% of the FY2023 tax liability was paid by the original deadline (March/April 15), potentially resulting in significant penalties. Let TABS simplify your tax filing process and ensure compliance. Reach out to us today! | | |
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Client Portal for Financial Needs We are excited to announce our new client portal for your finance needs was launched in October last year. We are implementing this portal because it was designed to make it easy for our clients and partner CPA’s to send us information quickly and traceable. It allows clients to securely send us documents and ask questions without having to download an app or create a username or password. How to start using Financial Cents: - Watch this short tutorial video on how you will use the portal.
- Add noreply@mail.financial-cents.com to your email contact to ensure the portal notifications don’t go to spam.
- Bookmark https://app.financial-cents.com/client-portal/ so you can access the portal on demand.
Our clients received an email request at some point after the start date to access the portal. If you have any questions, please don’t hesitate to contact our Financial Team. | | |
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| Retail Sales Tax In 2024, sales tax dynamics are positioned to undergo significant shifts due to evolving state budgets, consumer habits, and technological advancements. With nearly 30 states having reduced corporate or personal income tax rates since 2021, sales tax revenue is becoming increasingly crucial for state budgets. However, the National Conference of State Legislatures highlights challenges in maintaining the sustainability of state sales taxes, particularly as the sales tax base erodes with changing consumer and technology trends. Currently, the taxation of services and digital goods still needs to be updated, with most states not taxing the majority of services despite services accounting for about 70% of personal consumption. Only Hawaii, New Mexico, and South Dakota significantly tax services. Additionally, the taxation of digital products and streaming services needs to be more consistent, with about half of the states still imposing taxes on these modern consumables, reflecting a lag in updating tax laws to match the shift from physical to digital delivery formats. The complexity of taxing streaming services underscores the broader challenge of adapting sales tax systems to technological progress. States are also diluting their sales tax base by introducing new exemptions for various consumer goods while still taxing many business inputs, which some economists argue should be exempt. As 2024 progresses, states are expected to confront these taxation issues, considering exemptions, the applicability of sales tax to currently untaxed transactions, and exploring innovative strategies to enhance tax revenue from retail sales. Read complete Avalara article here. Contact our Sales Tax Team to find out if your sales are impacted by changes. | | |
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HR News: W2 or 1099? Final Independent Contractor Rule Issued The Department of Labor’s Wage and Hour Division (WHD) announced a final rule on worker classification, set to take effect on March 11, titled “Employee or Independent Contractor Classification Under the Fair Labor Standards Act.” This new regulation aims to provide clarity on the distinction between employees and independent contractors under the Fair Labor Standards Act (FLSA), revoking the 2021 Independent Contractor Rule that relied on “core factors” for determining employment relationships. The updated rule evaluates several factors on an equal basis, including the opportunity for profit or loss based on managerial skill, the investments by both worker and employer, the permanence of the work relationship, the nature and degree of control over the work, the extent to which the work performed is integral to the employer’s business, skill and initiative of the worker, and any other relevant factors indicating whether a worker is running their own business or is economically dependent on an employer. The Society for Human Resource Management (SHRM) had previously expressed concerns about potential ambiguity in worker classification under the proposed rule and advocated for the retention of the 2021 classification test for its clarity and consistency. | | |
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Don’t File Your CTA Too Late, But Don’t File Unnecessarily Early Either! Over the past 12 months we reported frequently via our newsletter about the Corporate Transparency Act. See here for more info. You may have received several emails from commercial parties over the past few months, offering to assist you with these filings, and trying to create a sense of urgency where there really is none. For companies established before 31 December 2023 you have until 31 December 2024 to file your initial report with FinCEN. Keep in mind however, that once the initial report is filed, you will have to update any changes (e.g. changes to directors, officers or UBO’s or changes to the name or DBA) within 30 days of the change. That is why TABS advises customers not to ‘jump the gun’ and file earlier than necessary. TABS prefers to assist you with the CTA filing in the latter part of 2024, as it potentially saves you time and money. If you still wish to have this done sooner rather than later, we’d be happy to accomodate. Please let us know by contacting us,otherwise we will reach out to you in the second half of 2024 for the required information in order to make the initial filing. | | |
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Exclusive Discount for Our Clients at citizenM Hotels Worldwide! CitizenM started its first hotel in the US in New York Times Square in 2014. 10 Years later, with 15 hotels in the US and over 40 globally, CitizenM hotels is a great success story for US expansion. TABS is proud and grateful to have had the opportunity to assist CitizenM in the US. We’re also very grateful that CitizenM is offering TABS clients with expansion plans in the US a discount. As a part of our community, you now have access to an exclusive 15% discount on the available rates at any citizenM hotel around the globe. Whether you’re traveling for business or leisure, you can enjoy citizenM’s renowned comfort and style at a more affordable price. Simply use the code TANC3 when booking your stay to take advantage of this special offer. Don’t miss out on the opportunity to experience the unique charm of citizenM hotels, known for their modern design, artful ambiance, and exceptional service, all while enjoying a special discount courtesy of our corporate deal. Safe travels and happy stays! | | |
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Podcast De Oversteek – season 3 ‘De Oversteek’ is Dutch for ‘The Crossing,’ a Dutch-spoken podcast series made possible by TABS Inc., among others. The Crossing is a podcast about entrepreneurship in America. You heard about sales, cultural differences, being the boss, insurance, and banking in season 1. Season two was about entrepreneurship in the south of the US, and in
season three, you can hear everything about doing business in The Pacific. | | |
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Private Office Suites Available for Rent in NYC Our New York City office now features an exclusive selection of photographs by the Dutch-Argentinean photographer, Richard Koek. His captivating work celebrates his profound love for New York City and the diverse, anonymous individuals who inhabit and breathe life into it every day. His photographs offer a unique window into the soul of the city, enriching our office space with stories told through his lens. In addition, we are pleased to share that our office has recently undergone an expansion. As part of this growth, we are now offering private office suites for rent. These newly available spaces are designed to accommodate professionals seeking a premium office environment within the vibrant heart of New York City. Contact us for inquiries. | | |
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New Office in The Netherlands Our team in Eindhoven, the Netherlands, is expanding, and to support our growth, we’re moving to a new office at Spaces – Eindhoven, Fellenoord. Our new space is designed to inspire innovation and enhance productivity, ensuring that we continue to serve our clients with the excellence they expect from TABS. It’s not just an office; it’s our new European base for ideas, partnerships, and success. | | |
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Transfer Pricing: Strategies for US Expansion Thursday, February 29th, 4-5 pm CET / 10-11 am EST, webinar TABS will be hosting an insightful session with Eran Shif, CEO and Founder of Incodox to shed light on the common transfer pricing missteps encountered by businesses during the setup or operation of a subsidiary in the United States.Expect to gain valuable insights from real-life case studies, highlighting the key blunders to steer clear of and the vital areas to concentrate on throughout the planning and after the incorporation of your U.S. subsidiary. This webinar is a rare opportunity to gather practical advice and strategies directly from industry experts.We encourage you to share any specific questions or challenges you might have when you register. Your inquiries will help shape the discussion, ensuring the webinar addresses your specific concerns.Don’t let this chance slip by to enhance your strategies and understanding of U.S. expansion. Book your spot today and move forward in optimizing your business’s transfer pricing approach. | | |
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Meet Elijah Nelson, HR Administrator Elijah joined TABS in October 2023 and brings his experience in human resources and a deep understanding of the complexities of managing HR for U.S. entities with European clients. Elijah’s commitment to excellence and his proactive approach to problem-solving have already made a significant impact on our operations. We’re excited to have him on board! “Every day brings a new challenge in Human Resources, so I enjoy helping our clients achieve their goals, solve their problems, and develop forward-thinking policies that’ll transform the human side of their business.” | | |
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