When venturing into overseas markets there are a number of Corporate Tax issues which should ideally be addressed at the outset.
There is also a very broad agenda relating to regulatory requirements and these need to be understood and addressed. The more important things to consider include:
Whether or not a taxable presence of the parent company will be created in the overseas jurisdiction (a taxable branch or “permanent establishment”) and if so, how will profits be assessed and what rate of tax will be imposed?
Is there a double tax treaty that modifies the way in which domestic tax law is applied?
Are there steps that can be taken to minimise exposure to taxation, improve cash flow, and that can facilitate the repatriation of profits back to the parent company?
The same applies for overseas companies investing into the UK.
At Old Mill we can and do assist a variety of clients in addressing these issues, helping them to ensure that related opportunities are not missed and that possible “tax traps” are avoided.
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