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I am a permanent resident of the USA (a green card holder) eligible to apply for citizenship, but I do not know how convenient this might be in my situation.

My father has a company in the Dominican Republic and he is planing to put about 40 to 50% of the company under my name. I will be working for a salary at the company and will report my income to the USA. My concern is whether I need to report and pay extra taxes for the part of the company that will be under my name.

If I become a citizen of the USA:

  1. When part of the company is under my name, do I need to pay US tax for the acquisition of the company?

  2. Do I have to pay US tax for the money that the company generates for itself every year? Or do I only need to pay what I get from dividends?

Please let me know if something is unclear.

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My concern is if I need to report and pay extra taxes for the part of the company that will be under my name

Yes, d'uh. Of course. It's actually quite complicated when it comes to foreign companies owned by US people, and you'll need a good tax adviser (EA/CPA licensed in your State) who's fluent in that area.

Citizenship has nothing to do with this, from tax perspective there's no difference between a green card holder and a citizen (except that green card holder cannot claim non-resident exemptions and certain tax treaties' exemptions).

  • yes, citizenship has nothing to do with paying taxes. You always have to. Or at least you have to report foreign income if it's higher then 10k(or something). If it reaches higher amount you will need to show that you payed taxes in Dominican Rep.. If the taxes were sufficient you might be able to avoid paying them in US. – Grasper Jun 15 '15 at 14:30

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