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How is the income from an Indian LLP (Limited Liability Partnership) taxed for a USA citizen who is a partner in an Indian LLP - which is taxed at 30%, with no additional tax liability for partners in India?
Replies (1)
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In India: The LLP pays 30% tax; there is no further tax for the partner.
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In the U.S.: You must report this income as part of your worldwide income. You may be able to claim a Foreign Tax Credit (Form 1116) to offset U.S. taxes with the taxes paid by the LLP in India.
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Compliance: You must be diligent about U.S. information reporting requirements, specifically the FBAR and Form 8938, and potentially others depending on the specific structure of the LLP.
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