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

1 points by mel_llaguno 7 years ago | 3 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

grizzles 7 years 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_llaguno 7 years ago | |

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

grizzles 7 years ago | | |

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