Everything you need to know about international tax planning lawyer

 

If you operate in multiple locations in the world, your corporation must comply with the tax laws of the foreign countries. In short, it means that you have to pay taxes if you operate in a foreign country.

Tax liability can be a complex yet real headache for many corporations and global investors. However, an international tax planning lawyer can keep your head above the water when it comes to international tax liability.

International taxation law

We live in a globalized yet modern business world where more and more organizations are dealing with complicated tax issues. When you derive profits in a foreign country or commence commercial activities internationally, you owe taxes to them.

Ignorance of international taxation law will only get you into trouble. Hiring an international tax planning lawyer won’t exempt you from paying taxes. Instead, he will help you create a strategy and will also reduce the taxation burden on your company.

If you don’t pay the international taxes, you will subject to criminal penalties for not complying with the taxation obligations.

 Whether you are deriving profit cuts from foreign sales, dealing with international business entities, or doing business in global locations, you have to be responsible for paying taxes. An international tax planning attorney handles your accounts abroad and assesses your international tax responsibilities to save you from hefty penalties.

Seeking legal help from an international tax lawyer will protect your company from tax penalties by the foreign government.

Foreign taxes that you must pay

International tax planning lawyers suggest that there is a wide list of corporate actions that will increase your international tax liability. But what exactly are those actions?

Here are some of the actions which will make you liable to pay taxes outside your country:

·         Overseas sales or selling your product in other countries

·         Opening and maintaining offshore (cross-border) bank accounts

·         Finalizing company deals in a foreign country

·         Owning any kind of real estate property outside your country

·         Having any kind of business outside your country

·         Having employees outside your country

An international tax planning attorney goes through your business activities in the presence of board officials and assesses your tax liabilities to create a strategy. In short, his work is to minimize the tax burden on your corporation.

Minimizing the tax burden

Whatever business you are running, you are subject to paying international taxes. However, giant multinational companies and some start-ups leverage the tax treaties by the US to minimize the burden. However, you need an international tax lawyer to get aware of the not-so-clear tax treaties.

The lawyer will discuss all the tax options related to the countries and will align your interests with the tax liabilities. Many businesses save millions of dollars by implementing and drafting a carefully prepared international tax plan by the lawyer.

International acquisitions and mergers

After international tax implications, we have international mergers and acquisition legal issues. However, tax responsibilities are more important and can even break deals if you are not compliant with international laws.

A large part of the cost of the M&A contracts goes back to the tax cost. Therefore, consulting with an international tax lawyer is of utmost importance if you are discussing a potential acquisition or merger with another company.

Conclusion

If you are operating outside the United States or your country, you definitely owe international taxes. However, if you are worried about the tax liability abroad, you can consult an experienced and well-versed tax planning lawyer to draft a viable strategy. This will ease your company’s unique tax situation and will also reduce the international tax burden.