International Tax Planning

The key to the success of any company is to optimize your taxation but at the same time efforts to minimize taxes and increase profitability (tax planning) must not break the law.

International business must take into account the level of tax attractiveness of the countries in which it is going to work and on this basis, often should modify its initial structure. This is what the international tax planning is –  the establishment of an effective algorithm to minimize the tax burden by using offshore tax schemes and taking into account the legislation of offshore jurisdictions.

If the company is registered in the jurisdiction where you need to pay local taxes, you must determine whether the government signed the agreements for the avoidance of double taxation agreements. If there is the opportunity to work under the classical scheme of offshore companies, you can obtain full tax exemption.

There are three stages of tax planning. The first stage is the basic formulation of objectives, development of strategy and tactics of the company subject to various risks of prosecution, tax control, tax burden. The second stage is the analysis of the current situation, the procedure (scheme) for further action of economic-financial nature, the choice of means to achieve the result. Scheme of tax planning shall be prepared in accordance with applicable law. The third stage – carrying out of actions for reduction of tax payments.

In order to effectively use trends and local specificity of taxation as well as future changes in tax legislation, we recommend you to use the advice of specialists giving professional services in this area.