There are many factors to consider relating to your taxes if you own a business in another country. Reporting gets very complicated in many cases, though much of it depends on the type of company, its structure, and your share of ownership. Forms that could be required to be filed with your U.S. tax return include (but are not necessarily limited to):
Form 5471 - Information Return of U.S. Persons With Respect To Certain Foreign Corporations
Form 8858- Information Return of U.S. Persons With Respect to Foreign Disregarded Entities and Fore...
Form 8621 - Information Return by a Shareholder of a Passive Foreign Investment Company
You will also be required, in most cases, to report your share of earnings each year as they are earned regardless of whether or not you actually take any distributions.
None of these forms are available in TurboTax and they generally require assistance from a tax professional with specific experience dealing with these types of matters.
Of course, you will have to also navigate the rules for owning a company as a foreigner in the UAE to ensure you are in compliance with their local laws and regulations. Also, while the UAE does not have a personal income tax they have recently implemented a tax on corporations, though small businesses have some reprieve from those taxes through the end of 2026. If you pay taxes to the UAE on the same income reported on your U.S. return, you may be able to take a credit for those taxes.
There are a lot of things to consider when contemplating an investment in a company abroad. I would recommend that you find an advisor who specializes in "cross border" business transactions. While THIS article is written for accountants, it paints a broad overview of other issues to consider and you may find it helpful.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
