International tax planning

What is international tax planning?

International tax planning is the science of opportunities as in the course of the process we strive for the entire utilization of legislative options in the interest of maximizing business profits for both private individuals and companies. The quality of international tax planning is one of the most important competition criteria, as this factor itself may be the cause of the success or failure of an enterprise. Large multinational companies of the world utilize all potentials of international tax planning to reduce their tax costs to the lowest possible amount. Our objective is that tax planning techniques shall not only remain the means of large companies possessing global force, but all other players of the business community also be active beneficiaries of such opportunities, and thus they can keep their competitiveness in the globalizing world economy.

What is double taxation and how you can avoid it?

It is not unusual for an individual or a company domiciled in one country to obtain taxable profits (income, profits) in another country. A person may have to pay taxes on these profits locally and also pay taxes in the country where the profits have been made. Due to the unfairness of this, many nations have bilateral double taxation agreements with each other.

In some cases, this agreement requires that the tax be paid in the country of residence, in order to avoid double taxation in the country of origin. In the remaining cases, residents must pay tax in the country where the profits are made (“withholding tax”) and the taxpayer receives a foreign tax credit in the country of residence to reflect the fact that the tax has already been paid. In the former case, the taxpayer must declare (abroad) that he is not resident there.

As part of our international tax service, we provide up-to-date information on conventions between countries. These help our clients to be sure that they do not miss any of the opportunities offered by the conventions.

Areas where our tax planning service can be useful

We work exclusively with the most modern tax planning models, which enable our customers to meet the challenges of the 21st century. In addition to optimizing the result connected to the international sale of products, we also have outstanding experience in the field of international investments:

Taxation of dividends

The taxation of dividends varies from country to country. In all of the jurisdiction what we offer the dividend is a tax exempt income. 

Taxation of director’s fee

When a person is paid for a managerial service it cab classified as director’s fee. In several jurisdiction what we offer this may be a tax exempt income. In some cases, this is also taxable income. You can read more about director’s fee in our blog.

Taxation of royalties

We are required to pay taxes on royalties, but the question is how much. If you are affected by this section, we can offer you our intellectual property management service, part of which we assist in international royalty transactions.

International tax planning necessity: company formation at the right place

It is one of the fundamental factors of international tax planning that our enterprise is founded at the most appropriate place. The most frequent tax planning places can be found in the link below. At the same time it is important to emphasize that attention must be paid to business objectives and the activities intended to be pursued in the course of selecting the place of company foundation, as the co-ordination of the above criteria can result in an individualized and effective solution.