Almost every cross border transaction has a tax implication. It might be just filling up your car on the continent and obtaining a lower price because of the differences in duty and VAT rates between countries or you could be buying and selling properties in different countries or conducting international trade. Whilst filling your car up in another country is relatively straightforward and requires no specialist consideration, once a tangible presence is established in different tax jurisdiction to your own, tax issues become much more complex. This can often lead to unanticipated tax liabilities or missed opportunities for tax mitigation.
International tax planning is based on the fact that the tax laws of any country are generally restricted to its domestic economy. The tax authorities have a difficult time crossing borders but people and wealth can do so easily.
One of the most effective ways of reducing tax liabilities, whether personal or corporate, is to take advantage of generally lower business taxation regimes through the use of Company structures. Aggressive tax planning can take advantage of unintended legal or administrative loopholes. Maximum advantage can be leveraged in utilising the different tax rules between the client’s host country and the UK to ensure that all due tax benefits are exploited.
We can advise clients with all international taxation matters such as:
- Worldwide taxation structures
- Transfer pricing issues
- Setting up of a foreign branch or subsidiary
- Foreign tax legislation
- Double taxation agreements
- Tax efficient funding and extraction of profits