If I have no physical presence in the US how will I be taxed?
If your U.S. corporation is at least 25% owned by a foreign entity or person, you are required to file Form 5472 along with Form 1120. These forms report any business activities involved in U.S. trade or business and determine your income tax liability.
However, generally speaking, if you do not have a physical presence in the U.S. and operate purely as an online business, you typically only need to make an informational filing in the U.S. and will not be subject to U.S. income taxes. Instead, you would pay income taxes in your home country.
A physical presence in the U.S. means you or your employees are in the U.S., you have a physical office, or similar conditions. If none of these apply, you do not have a physical presence in the U.S.
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