International Tax IssuesAnswered

I am in China and thought the treaty meant my Delaware LLC would not need Form 5472. Was that a bad assumption?

YC
yifan_cn_c128new member
October 5, 2024 3,710 views 1 answer
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I own a Delaware single-member LLC from Shenzhen and use it for software subscriptions sold mostly outside the U.S. I read about the U.S.-China tax treaty and somehow let myself believe that if the treaty meant no U.S. tax on the income, the annual filings would also be minimal.

Now I am hearing that Form 5472 is a separate issue tied to foreign ownership and related-party transactions, not to whether the treaty eliminates U.S. net tax. I want to know whether I mixed up two completely different parts of the system.

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