Articles

COVID-19 Relief Bill – An Update Focused on PPP and ERC

Introduction

The COVID-19 relief bill being debated since July in Congress was finally signed into law on December 27, 2020, as part of a broader Consolidated Appropriations Act, 2021. The new relief package ($900 billion) is intended to extend and modify certain provisions in the CARES Act ($2.2 trillion) enacted in March 2020. Together with the provisions in the CARES Act, this relief package is the largest provided by the US government in its history (e.g., the fiscal stimulus for the 2008 financial crisis was $700 billion) and is aimed largely at assisting US businesses and workers still suffering from the COVID-19 led economic hardship. The relief package is expected to stimulate the US economy during the first half of 2021.

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YEAR-END TAX PLANNING UNDER A BIDEN PRESIDENCY


November 20, 2020

Although vote counting continues and legal challenges to the election endure, many news media organizations are projecting that former Vice President Joe Biden will become the 46th President of the United States on January 20, 2021.

The House of Representatives will remain under Democratic control, but control of the Senate is somewhat less certain since the balance of power will be determined in January 2021 following a run-off election for two open Senate seats in Georgia. The run-off is necessary because neither of the candidates in either of the races obtained more than 50% of the total vote count as required by the state’s election law. A win by the two Democratic candidates would shift the balance of power in the Senate from one of GOP control to one where neither party has a majority. In that case, if all Senators vote along party lines (including independent senators who typically vote with Democrats), any deadlock on legislation would be broken by Vice President-elect Harris casting the deciding vote. This tiebreaking potential would also determine the Senate leadership, the ratio of committee memberships between the parties, and the leadership of each committee.

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HLS US state taxes practical guide

U.S. State Taxes – A Practical Guide for Businesses Entering the United States

Companies from around the world sell their products and services into the U.S. market, either directly or through a US subsidiary. These businesses are continually looking for better ways to understand the tax and overall business climate. Many companies investing in the US need to better understand Federal as well as state income taxes. Each state is able to apply its own different tax rules and regulation to businesses that have a taxable presence within their jurisdiction.

This article will highlight the differences between federal and state taxes in the United States.

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US Corporate Taxes: What to Look Out for When Entering the US Market


The United States is still one of the largest recipients of foreign direct investment and remains an attractive location for foreign businesses. A large amount of this investment comes from places like Japan, Canada, Australia, and the European Union.

One of the main reasons attracting investment is that it is home to the world’s largest economy. Excellent infrastructure; legal protection for corporations; a productive and skilled workforce; and lucrative consumer markets across several sectors make it an attractive place to do business.

Having said that, the US is also known for its highly complex tax system. With extensive tax regulations, all businesses that operate in the US will be subject to its tax laws. As a Japanese outbound business or an entity growing your presence in the US, you will need to navigate your way through sometimes vague and confusing tax requirements on a national, state, and local level.

To help you avoid some common pitfalls when it comes to US corporate taxation, we’ve outlined some of the major considerations that all businesses operating in the US should make, whether you’re simply operating a representative office or establishing a fully owned subsidiary of the parent company.

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HLS Global Group and HWS GmbH & Co. KG Form International Strategic Joint Venture

July 30, 2020

Shunsuke Saito
Hotta Liesenberg Saito LLP
info@hls-global.com


 

HLS Global Group and HWS GmbH & Co. KG Form International Strategic Joint Venture
Creating New Opportunities for Japanese Companies in Europe through a Partnership Founded on Trust

Los Angeles, CA, U.S. / Stuttgart, Germany: Today, Hotta Liesenberg Saito LLP, a leading international accounting, taxation, and business advisory firm, announced a new joint venture with HWS GmbH & Co. KG, a German full-service accounting, taxation, and business advisory firm with a rich history spanning nearly a century. This partnership will empower existing and new clients by creating new business opportunities for Japanese companies in Germany and for German companies globally.

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CARES Act – Employee Retention Credit and Employer Payroll Tax Deferral

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act contains a business relief provision known as the Employee Retention Credit (ERC), a payroll tax credit for “qualified wages” paid to retained employees between March 13 and December 31, 2020. The purpose of this provision is to encourage employers to keep employees on the payroll, even if they are not working during the covered period due to the effects of the coronavirus outbreak.

Please find attached information about the ERC relief and payroll tax credit.

CARES Act – Employee Retention Credit and Employer Payroll Tax Deferral

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act contains a business relief provision known as the Employee Retention Credit (ERC), a payroll tax credit for “qualified wages” paid to retained employees between March 13 and December 31, 2020. The purpose of this provision is to encourage employers to keep employees on the payroll, even if they are not working during the covered period due to the effects of the coronavirus outbreak.

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CARES Act – SBA Loan Information

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides relief to taxpayers affected by the novel coronavirus (COVID-19). Please find attached information about the two loan programs recently implemented through Small Business Administration (SBA): Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP).

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