The Essentials Of International Tax Planning

International tax planning may offer some attractive benefits - like helping you minimize or eliminate potential income taxes due. However, if you are a multinational investor, you need to work out the details carefully with your tax expert before you jump in.

Basic Aspects of International Tax Planning

Assuming you have an interest in sheltering your assets and/or income, it's essential you know the basic aspects of what's involved. There are five key aspects.
  1. The firm specializing in international tax planning assists clients in cross-border acquisitions and investments. These include developing holding companies, selecting acquisitions, repatriation, exit planning, and identifying any relevant local laws that need to be taken into consideration.
  2. Individuals and corporate clients in the U.S. need advice on all U.S. income tax pertinent to foreign investments. Considerations here include choice of entity, tax treaties, foreign tax credit planning and withholding taxes, as well s the operation of U.S. anti-deferral regimes.
  3. The firm also assists companies to develop cross-border equity and various compensation plans.
  4. Your chosen firm will also help to structure international joint ventures that require coordinating tax results under multiple foreign jurisdictions.
  5. Finally, the international tax expert will work to guide individual and non-U.S. companies on the most appropriate structure for their inbound investments in U.S. business, real estate and rules for U.S. transfer pricing.