Asked in Tax Law for Delaware

Q: Can I use the tax treaty between the US and Portugal to pay taxes only in my home country?

I recently incorporated a LLC company in Delaware. I'm a Portuguese citizen living in Portugal. The products we sell are manufactured in the USA by a third party manufacturer, then shipped to a USA third party fulfillment center, and from there shipped to our customers. I don't own any warehouses, don't have any physical USA establishment, and don't have any USA agents working exclusively for me. I operate the business from home through the internet. Can I claim the tax treaty between the US and Portugal and pay all my taxes here in Portugal where I live?

Here's the article 7 of the US / Portugal tax treaty: https://www.irs.gov/pub/irs-trty/portugal.pdf

Am I correct to assume that this treaty states that I can pay all taxes here in Portugal?

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1 Lawyer Answer
Bruce Alexander Minnick
Bruce Alexander Minnick
Answered

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