We live in an age of hyper globalization where foreign economies are more connected and interdependent than ever. Multinational corporations have their operations across multiple countries and geographies to benefit from the indigenous natural and human resources. Hence, learning a taxation system is crucial to conducting business beyond domestic borders.
As you expand your business across different locations, the taxation and compliance laws become far more complex. That is where an international tax advisor can help you set a smooth sail for your business operations.
Let’s delve deeper into the roles and responsibilities of an international tax advisor in India.
Who is an international tax advisor?
An international tax advisor in India is a tax professional who has in-depth knowledge about international taxation systems. They have the required professional credentials to help businesses and individuals comply with international taxation norms and their obligations.
Each country has its own rules and regulations when it comes to charging taxes from individuals or businesses. An international tax advisor in India has a detailed understanding of all the taxes that are applicable for your business depending on your area of operations and industry.
The leading and experienced accounting firms in India employ international tax advisors to assist their clients in global taxation matters and compliance norms. Let’s understand the functions of an international tax advisor to know how their services can be helpful for businesses.
Key functions of an international tax advisor
The increase in globalization has opened new doors for foreign companies in India. It has also paved the way for Indian corporations to benefit from global exposure. Running a business smoothly in a foreign territory requires a proper understanding of all the taxes applicable for your business. The international tax advisors in India help foreign businesses set up their operations in India by following all the relevant taxation laws.
They also provide proper guidance on the domestic regulatory environment and assist in identifying tax liability areas. In addition to this, they also help Indian businesses to manage their operations internationally. Let’s take a quick peep into the critical functions of an international tax advisor.
International tax advisors provide strategic guidance on the below-mentioned matters.
- A tax-efficient holding company framework
- Best suited jurisdiction for setting up a business to meet tax and commercial objectives
- Optimize taxation based on the company’s capital structure
- International tax planning and filing of taxes
- Figure out the applicability of withholding taxes in cross-border payments, including dividends, interests, royalties, etc.
- Cross-border treasury and financial services for firms going international
- Assessment of foreign tax credits, expense allocation principles, and establishment risks
- Overall review of international tax attributes for a particular business
Why should you choose an experienced CA firm employing international tax advisors?
When handling international taxation and helping your business reduce the overall risk, it is advisable to opt for an experienced CA firm. An experienced CA firm has well-trained tax professionals who also have the required credentials to manage your taxes effectively. They are well-versed in identifying common obstacles that businesses face while expanding the operations overseas. International tax advisors from a reputed CA firm can help you optimize your international taxation by reducing your tax liability.
Leading CA firms in India have the required experience and expertise in providing tax advisory related services. They can provide you with expert guidance to help you keep up with the dynamic cross border taxation system. They assist businesses by providing a wide range of services, including tax speculation, intellectual property rights management, contract creation, company structure suitability, preparation of company policy documents, etc.
The international tax landscape is full of compliance-related challenges. It is far more complex to keep up with the changing tax norms in multiple countries. One can quickly mitigate legal and financial risks by opting for a reliable international tax advisor who has the required expertise in setting up businesses in a foreign location. They can also help you decide the most suitable capital structure depending on your business needs. If you are planning to expand your business overseas seamlessly, you should always opt for an international tax advisor in India.