How to define US income on international sales?


I'm from Guatemala and i own a company here with license to export.

Two days ago I ask another question here:
Tax deduction for imported IT goods and services and @littleadv has given me a very helpful and informative answer.

Now I'm trying to find the best way to sell my products and services (Software & IT Support) in USA and Worldwide via an US based company (that i'll setup).

I know that each state have different tax regulations and laws (for the state) behind federal taxes, also that states like Delaware, Wyoming and Nevada doesn't have sales tax (is this true?).

In many questions in this site and some blogs posts around the web I see that tax apply only for US income.

The question is, how to identify if the income can be tagged as US income.

If I sell a product to a customer in any US state, of course, this is a US income. But, what's about a sale to a customer in Spain, Mexico, Japan, or any other country. They will pay by Paypal or WireTransfer to the company account.

Can this be considered as US Income?

In advance, thanks for your generous assistance.

---- Extra Info ---- This post is just to discuss what is considered as US income. I think this is a general question, applicable to any business. sorry if I'm wrong ;)

Foreign Tax International Income

asked Oct 2 '12 at 03:09
110 points
  • I think this would be better served by an accountant.... – Karlson 8 years ago
  • Of course, i'm planning to discuss this with an accountant, I'm just trying to get a little documentation before. – Darwin 8 years ago
  • You need to remember that in the US you pay taxes on world wide income. The question "what is US income" is irrelevant to a US entity (either a person or a company) in many cases. – Littleadv 8 years ago
  • Again, thanks for your help. I'm learning too much. – Darwin 8 years ago

1 Answer


You're asking a question well beyond "amateur" knowledge you can find on this site (or at all, for free). This is a complex issue which you have to discuss with a tax accountant and a tax attorney. Generally, you should consider your business structure very carefully, and it might be wise to separate your international and US entities. Business taxation is very complex, and you're being fed bits and pieces of information that will do you more harm than good (for example: Wyoming and Nevada don't have state income taxes, but corporations prefer Delaware because of the legal system, not taxes).

answered Oct 2 '12 at 03:44
5,090 points
  • Thanks for your help again ;). Of course, i'm planning to discuss this with an accountant, I'm just trying to get a little documentation before. – Darwin 8 years ago

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Foreign Tax International Income