Thank you for subscribing to our Newsletter MABETAX July 2020. Due to the impact of COVID-19 and stay-at-home orders the Internal Revenue Service and the Treasury Department are giving special tax filing and payment relief to individuals and businesses. The filing deadline for tax returns is July 15, 2020, extended from April 15, 2020. The due date for 2019s federal income taxes returns and other tax deadlines, including taxes for the first and second quarter was pushed back to July 15 to alleviate the pressure and setbacks that individuals and businesses are experiencing during the pandemic. This relief also applies to estimated tax payments that are due on April 15, 2020.
WE CAN HELP YOU
MABE International Advisors has a specialized team with all the experience necessary to present your statements in the most efficient way to ensure fulfillment of your obligations in the best possible way. If you need more time to file your tax statement MABE international Advisors can help you file an extension to avoid possible penalties. You can subscribe for our Montly Newsletter. For more information contact MABE International Advisors at: Mabetax.com – support@mabetax.com – (281) 741-3691.
As coronavirus starts to increase in multiple states the Treasure Department is considering delaying the due date once again to September 15, especially for southern states that are seeing an increase of COVID-19 cases. Nothing has been confirmed yet since the decision could affect year-end planning and the 2021 tax season, therefore the deadline for the 2019 income and tax payments is July 15th, 2020. Filers that cant get their paperwork together by the deadline can request an extension to file their return, but they will still need to pay any taxes owed by July 15.
Individuals, including Americans who live and work abroad, nonresident aliens, and foreign entities with a U.S. filing and payment requirement have until July 15 to file their tax 2019 federal income tax return and pay taxes owed. (Unless extended).
The new deadline for tax payments and return filings can be a big help for those who own interests in pass-through business entities such as multi-member LLCs treated as partnerships for tax purposes, single member LLCs treated as sole proprietorships for tax purposes, sole proprietorships and S corporations.
Correct preparation is critical to keep tax obligations low especially for small and medium-sized enterprises. Errors in tax declaration, whether international or domestic, could have consequences approaching the deadline.
The United States and China are still fighting a trade war that is not completely resolved and phase two of the trade deal remains uncertain. Continued tensions and tariff threats have worsened their relationship between Washington and Beijing, as a consequence what will be the future of global supply chains and the direction of the US trade policy?
The relationship between the United States and China may lead to labor and investments being destined to other countries such as Mexico.The entry into force of the new trade treaty between Mexico, the United States and Canada (USMCA) on July 1 will open new opportunities and challenges for companies with presence in those countries. The new United States-Mexico-Canada Agreement, a modern version of NAFTA, reduces trade barriers to the US, improves economic growth and will enable expanded exports between these countries.
US companies established in Mexico were buying auto parts from China and Korea, but under the new treaty they would have to buy greater quantities of these auto parts from countries that are part of the treaty.More companies in the US will take advantage of near-shoring in order to trade with countries closer to home rather than sourcing from overseas because it is easier for the proximity of travel and less difference in time-zones. This means that countries that are part of the treaty will benefit and will be strategic partners in times of uncertainty.
Some of the challenges that some companies face is the correct handling of the transfer of international costs such as the GILTi tax and how to navigate the Unites States tax system. Appropriate advice is critical in order for your company to benefit from the new business opportunities that the new trade agreement between the United States, Canada and Mexico will bring, this requires a group of international advisors with experience in the process so that you maximize your profits.
Congress passed the Paycheck Protection Flexibility Act to help small business and PPP borrowers to qualify for loan forgiveness. Some of the changes include an expansion of the covered period for loan forgiveness from eight weeks to 24 weeks. The measure also lowers payroll spending costs, to 60% from 75%. The PPP created by Congress as part of the $2 trillion Covid-19 Aid Relief and Economic Security (CARES) Act allows SBAs small business programs to fund loans up to $10 million per borrower for qualifying businesses to spend in payroll, rent, utilities and mortgage interest.
The legislation provides forgivable loans to small businesses and other entities impacted by the coronavirus pandemic and government-imposed stay at home orders. The PPP allows loan forgiveness for payroll expenses such as wages, salary and tips for up to $100,000 annualized per employee or 15,385 per individual over the eight-week period. The new rule allows a 24-week maximum for a loan forgiveness at $46,154 per individual. The new extension covered a period to 24 weeks allowing PPP loan recipients to spend the funds and qualify for loan forgiveness.
The proportion of the PPP funding must be used on payroll cost to qualify for loan forgiveness. Loaners may extend their loan to five years if they qualify. The new Paycheck Protection Program allows PPP recipients to apply for loan forgiveness early. If a borrower applies for loan forgiveness before the covered period and has reduced employees salaries by more than 25%, the borrower must account for the excess salary reduction for the covered period.
The importance of a company that ensures that all the requirements are fulfilled to achieve the forgiveness of your PPP loan is crucial. If you need help with your application, MABE International Advisors can help you review your application so you can get the most benefits from the program.
According to a study conducted by WalletHub.
- There are tax benefits for companies who want to do business in Texas.
- Promotes and embraces innovation and technology.
- The state doesn’t have a corporate or personal income tax.
- Texas has friendly business atmosphere for small businesses.
- Advanced tech, energy, and manufacturing industry Petroleum refining.
- Aerospace, aviation, and defense.
MABE International Advisors, Inc.
11511 Katy Fwy Suite # 640
Houston, TX 77079
Tel. 281-741-3691
Monday-Friday 9 AM 5 PM
OFFICES MEXICO
Tampico, Tamps
Loma Azul 207
Col. Lomas de Rosales
Tampico, Tamps., México
Tel.: +52 (833) 217.85.00 al 02
Querétaro, Qro.
Rufino Tamayo No. 7-101
Fracc. Pueblo Nuevo Corregidora
Querétaro, México
Tel: +52 (442) 225.32.71
Monterrey, NL
Dr. Jose Luna Ayala #204 1er. piso
Col. San Jerónimo
Monterrey, Nuevo León, México
Tel: +52 (81) 2317.48.80
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