With increasing globalization, corporate firms are opening their subsidiaries or branches in foreign countries. However, it is not always that easy to set up a company outside the home country. Different geographical locations have different rules for taxes that are to be followed by businesses. Complying with the tax regulations of different countries can be a challenge for business owners. It is why businesses looking to expand themselves choose international tax planning services. Continue reading to know more about international tax planning.
Understanding international tax planning
International tax planning is modifying the tax structure of your company according to the tax regulations in different countries. It is beneficial for global companies that are establishing themselves in different countries. International tax planning is concerned with setting up a company in any foreign country according to its tax regulations. It helps in knowing the tax regulations that can affect your company’s operations and policy in a foreign country. With international tax planning, one can make the best use of tax regulations in foreign countries.
What comes under international tax planning?
Many microservices come under international tax planning services. Some of the activities that fall under the bracket of international tax planning are as follows:
• International tax planning can help you create an international business structure. It also addresses custom issues pertaining to export/import.
• Structuring your business for any cross-border merger or acquisition can be done under international tax planning.
• International tax planning can help you with transferring intellectual property items like patents and copyrights.
• Every country offers tax credits to corporate entities that lower their tax burden. With international tax planning, you get to know about the tax credits/benefits offered by tax authorities in a foreign country.
• If you are setting up a holding company in a foreign country, international tax planning can help you create efficient holding structures.
• International tax planning can disclose the tax liabilities if a cross-border company is acquired. It also talks about the expected tax liabilities if a company is opened in any foreign country.
• International tax planning helps corporate firms that have to deal with expatriate taxes. It can also help a company with tax management practices like transfer pricing.
How to implement international tax planning?
The best way to implement international tax planning is to outsource it to an advisory/CA firm. By outsourcing it to a reliable CA firm, you can focus on collecting funds for setting up a company in a foreign land. Also, it is hard to find global tax experts that are aware of the global taxation landscape and challenges. Not to forget, the costs you will spend in hiring and training in-house global tax experts.
With international tax planning, you can open a subsidiary/firm in a foreign land within the legal jurisdictions. When you comply with tax regulations, you avoid legal hassles in a foreign land. Also, international tax planners will offer expert advice while setting up a business in any foreign country. Go global in 2022 with international tax planning!