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Between EU companies, money can be passed between parent and subsidiary without taxes.

As a US citizen, if I own a European company and distribute earnings, I will be taxed on the earnings upon distribution by the corporate income tax of the European company, and again upon receipt as a US person. European countries typically do not tax income that was taxed under corporate taxes, so they don't experience this taxation.

Normal income is subject to double taxation treaties, but from what I can tell, these wouldn't apply to corporations.

How do I prevent double taxation on income from EU corporations?

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    I took a look back at some of the other questions you have asked in regards to US vs foreign taxes - I will reiterate the last comment in my answer, which is that you really do seem in need of professional tax advice. It can be very difficult (and sometimes impossible) to amend mistakes made in the filing of cross-jurisdictional tax returns. Sep 14 at 17:32
  • @Grade'Eh'Bacon Yeah. Cross border taxes are a mess. You are right. I've tried to read the laws, but they are super complicated.
    – ignorance
    Sep 14 at 17:38
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    You are asking the right questions, which is great, but unfortunately the technical complexity is high enough that not only should you try to pay for someone to give the right answer, you should also want to pay for someone to take professional liability for that answer. Unfortunately, good advice in an area like this will be expensive, but remember that bad advice can be far more expensive. I've seen clients who took poor advice in prior years from accredited professionals working outside their comfort zone with international tax, ultimately pay ~75% tax instead of ~45%. Sep 14 at 17:46
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"Normal income is subject to double taxation treaties, but from what I can tell, these wouldn't apply to corporations."

This simply isn't correct. Tax treaties and their impacts vary from country to country, but rarely are corporate payments excluded from consideration. In some cases there may be double-taxation without proper planning, but how that might occur and how you might be able to prevent it is a very specific question that would need a lot more details [among them: countries of income, type of income to the receiving company, actual method of payment, legal status in various countries, other forms of available income and taxes to offset, etc.].

"European countries typically do not tax income that was taxed under corporate taxes, so they don't experience this taxation."

This statement also isn't flatly true to my knowledge. What you may be seeing is in regards to withholding taxes between corporations, which is different than what it seems you are implying [that personal taxes aren't owed on corporate distributions ie dividends received]. See this link showing a 30% tax rate on dividends in Sweden when received personally [add this to a 20ish% corp tax and Sweden's overall tax on corporate income distributed personally is 50%, which is about the same as the regular tax on income in Sweden]: https://home.kpmg/xx/en/home/insights/2021/06/sweden-taxation-of-international-executives.html

Frankly it looks like you are in over your head here. STRONGLY recommend you hire a competent tax professional familiar with tax in both relevant countries as well as how their tax treaty operates.

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