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rakhi.v
rakhi.v, Tax Attorney
Category: Tax
Satisfied Customers: 4480
Experience:  Have graduated in Law with specialization & emphasis in Financial Laws and has working experience of over a decade.
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I have a BVI company that is the single member of a US LLC.

Customer Question

I have a BVI company that is the single member of a US LLC. My LLC receives interest income and dividend income from investments we make in the US. I read about a 30% withholding requirement. When do we have to do it? Also, does the BVI company need to file a US tax return?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Just that.
Submitted: 1 month ago.
Category: Tax
Expert:  rakhi.v replied 1 month ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

YES-- BVI will be subjected to US taxation and will have to file returns, the primary reason being that it has its income from the LLC which has in turn income from the US sources. If you own a BVI company and live in the US (assumably as a Citizen or Perm. Resident, with US Sourced income from your BVI Company. You may be subject to taxes in the US, as the US Taxes on Worldwide income, irrespective of the destination of the company.

So far as withholding is concerned, it will be done at any time when a payment / distribution of the income is being made to the BVI entity.

I am sure this would help.

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Warm Regards,