International Tax Planning
It is important for our clients to line up their tax strategies according to their business while being punctual whenever obligation arises.
Tax planning is the core of financial processes. Most of the participants of the international money game are overseas because of taxes.
Technically, international tax planning is quite simple; the details are what make it complicated. International tax planning is based on the fact that the Inland Revenue laws of any state are largely restricted to its domestic economy. The tax authorities have a hard time crossing borders.
Find below some of the main activities this service has to offer:
The absence of dividend withholding tax is a major benefit to the UK corporate tax regime in international tax planning. There appears to be no prospect of this significant benefit being withdrawn.
Even where UK withholding tax on interest may be applicable this liability is potentially subject to double taxation[i] relief, or EU Directive relief.
The following purposes will be examined, after you set the exact question, regarding the consultation:
- Extraction of foreign- source dividends at mitigated rates of foreign withholding tax (‘the foreign withholding tax criterion);
- Receipt of such foreign dividends at the most efficient rate of domestic corporation tax in the country of residence of the International Holding Company (ICH);
- Distribution of available profits to non-residence shareholders at acceptable rates of domestic withholding taxd (‘the domestic withholding tax criterion’) and
- Realisation of capital gains from the disposal of shares in foreign companies at low, or preferably zero, rates of both foreign and domestic corporation tax on the said gains (‘the capital gains exemption’).
The following services can be provided through our qualified team of experts:
- UK tax compliance issues, requirements and Procedures: This is the strict compliance with the provisions and requirements of the Laws and Regulations of the United Kingdom. A solid opinion and/or information will be provided, in relation with the liabilities of the company and/or the LLP.
- Cross border group constructing (Within the UK and in different Jurisdictions): This can be achieved bearing in mind the Double Taxation Treaties, that were signed with the United Kingdom and other countries. (Revert to Articles and Info, for more information regarding the Double Taxation Treaties).
- Dividend; Interest and loyalty planning: As stated above this is related with the Double Taxation Treaties, and other international agreements and regulations. Our team of associates will examine every accessible possibility in order to give you their opinion and/or advice.