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Expanding abroad

13 March 2012 / Ross Welland
Issue: 4345 / Categories: Comment & Analysis , Business , Income Tax
ROSS WELLAND considers international tax management for owner-managed firms

KEY POINTS

  • Consider the local domestic tax legislation.
  • Effect of double tax agreements.
  • Minimise withholding tax.
  • Is there a permanent establishment?
  • Follow administrative procedures.

Business is increasingly global for a variety of reasons. Businesses that even a few years ago would have focused solely on the UK are looking for opportunities around the world.

While this can be good commercially the downside is that it means a business has to worry about not only its own country’s tax system but also those of the countries it does business with.

We are also living at a time when governments round the world are looking for ways to raise revenue and a business trading in a country can be a relatively easy target.

We know how hard it can be for...

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