International company with multi-national subsidiaries.

[millerguide]

How do taxes work in that situation? I Assume you must pay taxes in each country where a subsidiary is, but would a US citizen, with a company HQed outside of the US, still have to pay US taxes?

[Fulcrum]

According to the IRS - yes.

[millerguide]

So, if a US citizen has a company, 0% of which is in the US or has anything to do with the US, that citizen must pay taxes? Wow haha, that stinks. Thanks for the info!

[Harold Mansfield]

So, if a US citizen has a company, 0% of which is in the US or has anything to do with the US, that citizen must pay taxes? Wow haha, that stinks. Thanks for the info!

No, ha ha, it doesn't. The IRS knows people set these situations up to try and avoid paying taxes. The bottom line is if you're a citizen or do business in the U.S. you will pay taxes on your income.
If your operation is as big as one would assume to be asking such questions, you would have the proper legal and tax people to help you reduce your tax burden. But you will not dodge paying taxes all together. You may find ways to offset taxes, but you cannot avoid them.

If you are a US Citizen your worldwide income is subject to U.S. income tax, regardless of where you reside.
Taxpayers Living Abroad (http://www.irs.gov/Individuals/International-Taxpayers/Taxpayers-Living-Abroad)

Closed thread. Duplicate already posted by same OP.