US LLC Owned From Greece: Form 5472, Taxes and Filing

What the US treaty with Greece does for an LLC owner

Because Greece has an income tax treaty with the United States (IRS treaty list), an owner there has two tools that owners in non-treaty countries do not.

The permanent establishment test. Under US treaties, a resident's business profits are generally taxable in the US only when attributable to a permanent establishment there. An LLC run from Greece with no US office or dependent agent may have none. If a return relies on that, Form 8833 discloses it, and leaving it out can cost US$1,000 (IRS).

Treaty withholding on Form W-8BEN. For US-source dividends, interest or royalties paid to you, a treaty claim on Form W-8BEN naming Greece gets the treaty rate instead of the general 30% (IRS, IRS).

Neither tool changes Form 5472, which is due either way.

Getting your Greek owner details ready

About you. Your passport, your address in Greece and your tax ID. For a resident of Greece, this is usually the taxpayer identification number the Greek Tax Administration assigns to every taxpayer (OECD tax ID sheet).

About the money. Every amount that moved between you and the LLC in the year, with dates. If you funded the LLC from an account in euros, the statement from that account helps us convert it to US dollars.

About the LLC. Formation papers, the EIN letter and the state where it was formed (state fees).

The legal sources behind this page (Greece)

The treaty articles and US provisions this guide relies on.

Treaty

• The IRS lists the 1950 income tax treaty. General effective date (IRS Table 3): treaty Jan. 1, 1953 (IRS treaty documents for Greece; treaty text; IRS Table 3).
• Article III (Permanent Establishment), which defines a US permanent establishment.
• Article IX (Dividends), on dividends.
• Article VI (Interest), on interest.
• Article VII (Royalties), on royalties.
• Article XIV (Foreign Tax Credit) and Article XVI (Elimination of Double Taxation), on relief from double taxation.
• Treaty benefits for income earned through a fiscally transparent entity, such as a single-member LLC, are decided under section 894 and Treas. Reg. section 1.894-1(d) (IRS Pub 515, Form 8833).

US law

• Form 5472: Internal Revenue Code section 6038A and Treas. Reg. section 1.6038A-1; final regulations T.D. 9796 treat a foreign-owned US disregarded entity as a corporation for this purpose (IRS Form 5472 instructions).
• US trade or business and effectively connected income: Code sections 864 and 871 (IRS Pub 519).
• Treaty disclosure: Code section 6114, Treas. Reg. section 301.6114-1, and the section 6712 penalty (IRS Form 8833).
• BE-13: 15 CFR 801.7 (eCFR).

The tax law of Greece itself also applies to you; check it with a local adviser.