International tax planning
International tax planning is a set of financial and legal tools that allows you to reduce the tax burden, which is provided for by law (or at least not prohibited by it) in order to maximize the income received in all jurisdictions from foreign economic activity.
International tax planning is becoming more and more a part of the life of modern business, and taking into account world globalization and the unification of tax and financial control, it is becoming an integral part of it.
International tax planning is becoming more and more a part of the life of modern business, and taking into account world globalization and the unification of tax and financial control, it is becoming an integral part of it.
Taking into account many years of experience, we offer our clients a set of legal mechanisms that will legally minimize the total tax payments that arise in all jurisdictions of doing business, as well as company taxes in the country of its registration (actual location). When developing tax planning mechanisms, we take into account both the principle of territoriality and the principle of business residency.
It's no secret that on January 1, 2017, Ukraine joined the BEPS Plan, and on July 23, 2018, the MLI Multilateral Convention was signed. By the end of 2018, Ukraine plans to sign another international agreement - an agreement on the automatic exchange of tax information between countries (Common Reporting Standard (CRS).
These events indicate that the use of "old schemes" for tax optimization and the use of an aggressive tax policy are becoming irrelevant, and in some cases even dangerous for real business owners.
Effective international planning mechanisms include:
1. Building a holding (group of companies) consisting of Ukrainian and foreign companies.
2. Diversification of profits in countries with the lowest level of taxation.
3. Decrease in profits by attributing costs to interest, dividends, royalties, etc. for intragroup companies, in countries with optimal taxation for these types of payments.
Proper international tax planning is:
1.the ability to effectively accumulate funds for business development abroad and further investment.
2.transparency of the structure for business when it comes to attracting investors.
3.protection of assets in Ukraine when using foreign investment mechanisms.
The most responsible step in international tax planning is the choice and/or change of tax jurisdiction (residence).
In some cases, the change of tax jurisdiction is possible within the country. This applies to countries that have free trade zones or regions with reduced tax rates.
Therefore, our company, within the framework of international tax planning, in addition to the above mechanisms, offers the registration of companies abroad, the selection of banks and support for opening accounts for foreign companies.
