lundi 13 mars 2017

International Corporate Tax Planning Information

By Ruth Collins


The process in determining where or how an entity would be taxed is call international taxation. They could be taxed either by one or both of the countries depending on the laws stated by these different countries. The determining factor between them is usually the treaties they have with each other.

There are companies which want to prevent paying taxes on two countries instead of just one. Failing to prevent this might result in them paying more than what is necessary. International corporate tax planning Canada is a good example in determining which country their tax must go to. Understanding this fully will make you take advantage of it.

Canada employs a combination of management and control standard and incorporation standard. This mean that if the establishment located in the country is also incorporated there, then they are considered tax resident. But if is not formed there though the management and control of it is there, then they are still fully taxable.

If you want the company you have to be nontaxable legally in Canada then the incorporation must have happened in another country. Management and control must also be done in another country as well. These include the highest decisions made and their bank accounts must not be inside the country.

To understand these things better and let them help you in regard with the legalities, hiring the service of lawyers in a firm with specialization on these is a needed. They can give you guidance in preparing required documents used for the determination of the taxability of your establishment. The following are information in finding one.

Ask your colleagues and business partners for recommendations. You could even ask the current legal counsel of your business if they have any recommendations as well. These could save you some time in checking the background of the lawyer by having a trusted person recommend them.

Inquire about the experiences in handling situations like you have. They will be able to give you examples of establishments that they are working for right now. Having numerous clients are a great sign specially if a few of them are prominent companies. You could try to approach and ask if by chance you know a client of they have personally on his opinion regarding the service that they have given him.

Ask for their legal fees and what are the other things they could help you with. It is better to have just one team working on your corporate needs to prevent miscommunication between themselves that might result in facing problems with the government. They would be also working with your accounting and finance department to be able to properly determine what is taxable or not.

These are just few descriptions and advises on things that could help you minimize your taxes legally and maximize your profits. Various countries have treaties with Canada and you must be able to get someone to help you who is an expert in these treaties and the laws of the other countries. Do not be afraid to ask assistance from your legal counsel.




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