Foreign Sole proprietorship

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fpvt2
Posts: 3
Joined: Thu Mar 17, 2011 3:24 pm

Foreign Sole proprietorship

Post by fpvt2 »

If a person owns a foreign sole proprietorship, does he/she file Schedule C ?

In the foreign country tax return, a tax payer can use a "norm" calculation where he multiply the revenue by 30% to come up with the net income. So, the tax payer doesn't need to list by the expenses like advertising, utilities, etc.

In the US Tax return, is there a similiar thing like that ? Or, you always have to list the expenses individually ? Does the total of the expense and the COGS then have to match the 30% number that he writes on the foreign tax return ?

Thank you.
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