Ask HN: Are foreign SaaS providers exempt from US corporate taxes?

1 pointsmel_llaguno7y ago3 comments

I'm looking to deploy a SaaS solution from Canada which will have customers in the US as well. If I'm based solely in Canada and have _no_ permanent establishment in the US (including ensuring that my cloud instances were _not_ deployed on any US zones and avoiding employees/contractors from the US), would I be exempt from any US corporate tax?

I've been trying to find a clear answer and as with all things related to taxes, it's been utter confusion. Ran this question by the Canadian BDC/EDC with no avail. Practical experience would be appreciated.

If there is no need to execute a "Delaware straddle" and there are beneficial tax implications for not doing so, then all the better.

TIA

3 comments

grizzles7y ago

That's right. You pay tax in your jurisdiction.

Also you can put your cloud instances in US zones and have US contractors. That's irrelevant to your tax situation.

mel_llagunoOP7y ago

Thanks for the reply. Is there any relevant documentation online which makes this clear?

grizzles7y ago

https://www.law.cornell.edu/uscode/text

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Ask HN: Are foreign SaaS providers exempt from US corporate taxes?

1 pointsmel_llaguno7y ago3 comments

If there is no need to execute a "Delaware straddle" and there are beneficial tax implications for not doing so, then all the better.

TIA

3 comments

grizzles7y ago

That's right. You pay tax in your jurisdiction.

Also you can put your cloud instances in US zones and have US contractors. That's irrelevant to your tax situation.

mel_llagunoOP7y ago

Thanks for the reply. Is there any relevant documentation online which makes this clear?

grizzles7y ago

https://www.law.cornell.edu/uscode/text

j / k navigate · click thread line to collapse