With businesses moving beyond borders, it is essential for them to work with a reliable global tax advisory service to establish and grow their international presence. Read this post to know more about some of the top advantages of international tax services.
Tax collected from companies is an important source of revenue for governments worldwide. But while taxation is a vital toolkit for national governments, coordinating it between countries often proves immensely challenging for multinational companies.
Moreover, as many businesses are moving beyond borders, most countries have also tightened the tax regulations to prevent evasion. In such a scenario, the expertise of a global tax advisory service can prove very beneficial for a business wanting to establish and grow its presence internationally.
Here are some of the top benefits a business can expect with international tax services-
1. Avoid Non-Compliance Penalties
As international tax experts have extensive experience working with global businesses, they are fully aware of the tax regulations. They keep themselves updated with all the latest amendments to global tax provisions to help their clients comply with all the changes at the earliest.
Non-compliance could lead to penalties and even other severe punishments. Such instances often damage the company’s reputation and have severe long-term implications. However, with a professional international tax advisor by your side, you can avoid such non-compliance penalties and conduct your business with transparency.
2. Reduce Tax Liabilities
Most countries generally have provisions with the help of which corporate entities can considerably reduce their tax liabilities. However, it can be difficult for a company that has recently established itself in a foreign country to clearly understand the local tax provisions and benefit from the same to reduce their taxes.
Global tax professionals can help you take optimum advantage of such provisions, deductions, and exemptions to offer significant tax savings. The money saved can be better spent on other activities to further strengthen the company’s presence internationally.
3. Planning Foreign Tax Credit
Companies with subsidiaries in other countries are often required to pay taxes on their international income in both countries. However, say one country has already levied taxes on the revenue. In that case, the company might be eligible to claim a tax credit for offsetting the tax paid in the other country to avoid double taxation, especially in the presence of a DTAA (Double Taxation Avoidance Agreement) between the two countries.
A global tax advisor can help international businesses strategize foreign tax credit to provide maximum tax savings.
4. Establishing Transfer Pricing Mechanism
It is also crucial for companies to establish correct transfer pricing mechanisms if they transfer goods or services within the organization or to any related entity across the border. The company’s national and international tax liability is directly affected by these prices. Wrong prices can lead to significant penalties and losses for the company.
Global tax services can help businesses implement the pricing mechanism that fulfils the legal obligations and offers higher savings.
International Tax Services to Establish a Global Footprint
Global tax experts function as an extended arm for their clients in helping them establish and grow their international presence. They help them take maximum advantage of the tax-saving opportunities while also ensuring that the business fully complies with national and international tax laws.
If you plan to expand your business overseas, then look for a reputed global tax advisory service to accelerate your growth and introduce your business to newer markets while keeping your legal compliance under check.