Singapore or HK Company + US Corporate Bank Account + Taxes?

[zeytin]

Hi,

Does anybody have success with opening a US bank account for their Offshore (tax haven or not) companies? If yes, do they still cut 30% withholding tax from US based income even though your company is non-resident and taxed somewhere else like Hong Kong or Singapore?

Assuming there isn't withholding tax because my company is in (or will be) in Singapore, but the bank account is in the US (just like Worldsfirst and Transferwise, ain't it?) and receiving payments from the US company with W8Ben form and sending payments out directly from the United States.

Do you think it'll work?
@Martin Everson

 

[JohnLocke]

You should not necessarily TAG a user to a thread. There are two reasons for it, first none of the other users may want to answer. Second, if you only want the answer from a user specific you may PM him if possible.

Otherwise I'm sure even if you don't TAG any user here people will answer if they know something.

 

[Martin Everson]

I also can't really answer US questions I have no experience there at all.

 

[Tax Cow]

Does anybody have success with opening a US bank account for their Offshore (tax haven or not) companies?
- Yes. Both.

If yes, do they still cut 30% withholding tax from US based income even though your company is non-resident and taxed somewhere else like Hong Kong or Singapore?
- Depends on the income type. "US Based income" is a worthless term, don't ever use it. It's ECI (Effectively Connected Income) that you want to focus on.
-- If it's interest, royalty, dividend, commission income, or another type of passive investment income, the US resident company making the payment must withhold tax. You need not file any returns yourself, unless you know that the company obliged to withhold tax does not comply with the law. Your corporate residency status elsewhere only matters to the extent of tax to be withheld (treaty rate or not? and how much?)
-- Passive investment-type incomes aside, if you have Effectively Connected Income, you need to file a return an pay tax yourself in the US. If you work from a Singapore-based office for the Coca Cola company, you do not have any ECI income taxable in the US, even if the wire payment originates from the US. In the same situation, if you have just one part-time contractor or an employee based in the US who in one way or another helps you, this income becomes taxable ECI.

Spend 8-12 hours learning everything you can about ECI, and then 4 hours more. Will be well worth your time.