With transfer pricing deciding savings on your tax outgo and compliance with applicable laws, it’s better to rope in a specialist. Wondering what to look for in a specialist? We’re here to help.
International tax planning and compliance issues are a fact of life for MNCs and companies keen on foreign expansion. It’s hard for them to cope up with the changing transfer pricing laws.
Non-compliance with these laws is often disastrous, incurring interest on tax underpayment, twofold taxes, financially ruinous penalties, and of course, litigation. That’s where transfer pricing services providers step in, walking clients through the complexities involved, helping them ward-off ramifications and save money. Read on to know how to choose the right one.
There’s more to otherwise simple-looking International tax planning than meets the eye. Plus, the global marketplace is an evolving world, prone to consistent and rapid changes. Any service provider worth its salt stays on top of the latest developments, intricacies of the international tax planning, and compliance requirements. Only then, they can plan and execute strategically in line with the compliance standards. The bottom line is to ensure your tax partner has the inclination and resources to stay abreast of everything that happens in the global marketplace.
An MNC has to deal with different tax authorities in different countries. With tax rules being country-specific, taxation issues often surface. At times, the challenges are too big for one transfer pricing services provider’s expertise. That calls for some professional help. Your service provider must have ties with experts internationally for complete assistance in specific matters. A well-connected service provider is likely to resolve issues the way they should be, keeping you profitable and competitive in a dynamic, intensely competitive global arena.
It’s always beneficial to have by your side an international tax planner with broad expertise. Such a professional is well equipped to deliver end-to-end solutions for all your international tax planning requirements while conforming to the compliance standards. Here’re a few areas of expertise that your service provider should have to keep you advantageous.
Tax credit planning: Governments globally offer tax relief to bring down the tax outgo of certain taxpayers. The service provider should be able to identify tax breaks applicable to you and plan accordingly to restrict your tax liability and keep you profitable.
Expat and Inpat tax planning: The service provider’s scope should include foreign bank reporting, FATCA compliance, advising your HR professionals on leveraging payroll taxes for benefit packages, reviewing policies related to international assignments, and more.
Strategic international tax planning: Your service provider’s capability in short-term and long-term strategic international tax planning can help you reduce tax burdens. This includes corporate taxes, customs and excise payments, withholding taxes, etc.
International restructuring and insolvency: Specialization in cross-border restructuring and insolvency is critical to select entities, interfacing with all types of multijurisdictional creditors, and safeguarding foreign investments across several jurisdictions.
IC-DISC planning: ensure your transfer pricing services provider is well-versed with IC DISC (Interest Charge-Domestic International Sales Corporation) structuring. Expertise in this area would help you usher in permanent yearly tax savings and a host of other benefits provided you export US-made goods. Specialization in mergers and acquisitions at international level is another desirable trait for a worthy service provider.
With evolving regulations, you need a trusting guide by your side. Professional Firms can help you in understanding the intricate ecosystem of transfer pricing.
Some of the most noted firms which offer transfer pricing services are Dewan P N Chopra and Co, Nangia & Co LLP and KPMG International. There are also other firms offering the same, you can talk to them and choose a firm which best suits your unique needs.
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