Acceptance of invoices by offshore companies


R

Rosario Maddox

Hello,

We would like to know any references if the offshore company invoices
are accepted by US based companies.

Are there are any discriminations?

For example Panamanian, Belize, Costa Rican companies issuing invoices
to US companies, can those invoices be deducted from the income for tax
purposes?

R. Maddox.
 
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P

Paul Thomas, CPA

Rosario Maddox said:
We would like to know any references if the offshore company
invoices are accepted by US based companies.

Are there are any discriminations?

For example Panamanian, Belize, Costa Rican companies
issuing invoices to US companies, can those invoices be
deducted from the income for tax purposes?




It'll depend on the tax reporting basis for the company.

If the company is on an accrual basis for tax reporting, then the company
can take a deduction for the invoice following the same rules for US based
invoices, ie: when the debt is realized.

If the company is on a cash basis for tax reporting, then the company can
only take the deduction when that invoice gets paid.

Of course, the invoice must be for a legitimate business expense (goods or
services) to be deducted in any case.
 

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