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How to calculate payment of expenses:
SAIB, LLC is a US company that provides cell phone and internet service; it seeks to expand its international operations into Kyrgyzstan. The US Ambassador in Kyrgyzstan introduces SAIB to a delegation from Kyrgyzstan and SAIB agrees to form a joint venture with a Kyrgyzstan private company. It applies to the Kyrgyzstan government for licenses to set up the latest 4G LTE wireless towers in Bishkek, but its applications are met with resistance and questions about the company. To answer some of those questions, SAIB invites a government delegation to its plant in the US to tour its operations and to demonstrate its software and hardware. It pays for the airfare (first class), hotels (4-star), transportation and meals for the delegation including the spouses of three high level government officials.
While in the US, two of the government officials indicate they have always wanted to go to Disneyland. SAIB offers to pay for their trip (and their spouse's expenses) for a 3-day visit to Disneyland. Three months later, SAIB's applications are approved, and shortly thereafter, SAIB is importing the electronics, hardware and software to begin construction.
To expedite the processing in Customs and keep the project on schedule, it pays the Customs' Officials about $300 each time a shipment arrives in Kyrgyzstan. Further, in order to maintain a good relationship with its Kyrgyzstan partner, SAIB gives it $500,000 to cover expenses and other miscellaneous issues that might come up during the project.
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