There are so many faced paced tax, legislative and regulatory developments happening around the world. Multinational businesses must keep up to date with these in order to compete and survive in today’s globalized markets. In addition to these, there are also many challenges such as new business models, liquidity concerns and evolving information technologies.
These make is hard to efficiently manage a business on a global scale. All of these factors makes it necessary for the tax departments to be agile and well-versed in both internal and external developments. They have to deal with competing goals and interests worldwide. This is where international tax planning comes in. If you want your company to achieve a competitive effective tax rate, then you need to chalk out some global tax strategies and tax functions that are in keeping with the corporate strategy, planning and operations if your company.
International tax planning is very important for those people who are planning to expand into new jurisdictions, need cash flow in your overseas operations, or want to manage your treasury function globally. It is also important for defending a tax authority challenge, for example, on thin capitalization. International tax planning can include the following areas:
- Business models
- Cross-border financing and treasury solutions
- Inbound and outbound structuring
- Controlled foreign companies tax planning
- Tax efficient supply chain
- Income tax treaties
- Profit repatriation
- Loss utilization
- Intellectual property and intangible assets management
- Regional tax issues, for example, EU tax harmonization
- Credit management and planning