Tax Planning
Tax matters are crucial for every business. Tax planning is recognized by enterprises worldwide as a means of significantly reducing their tax burden on a lawful basis. To increase the profitability of investments and business activities it is recommended that tax planning be used from the startup stage. While there are no absolutely tax free jurisdictions and enterprises, effective tax planning helps to structure business in such way that tax liabilities either do not arise or are reduced to a minimum.
Double taxation creates an excessive tax burden and often makes cross-border transactions and investments between respective countries economically unfeasible. To avoid this many countries have entered into international double taxation treaties.
Double taxation treaties typically deal with the following objects of taxation:
- business profits and dividends payable to individuals and legal entities;
- property and income received from sale of property (including shares and other types of securities);
- income and property received in the course of cross-border shipping operations; and
- royalties and license fees in relation to intellectual property.
Accordingly, in the course of international business operations double taxation may arise in respect of the following taxes:
- income tax;
- corporate profit tax;
- property tax.
In the process of tax planning the experience and practical skills of the adviser are very important to achieve an efficient result with minimum risk. Allied Asset specialists will be glad to assist you in understanding international tax planning, finding the most appropriate solution for your business and implementing it in practice.
Furthermore, tax legislation of the correctly chosen jurisdiction creates tax planning opportunities for the optimization of taxes on acquisitions and the disposal of real estate, shares, participation interest and the transfer of intellectual property.