One of the key goals of any business is earning of profit. The larger it is, the more successful the business is. You can increase profits both by expanding sales and increasing the cost and quality of services, and by reducing costs and, of course, using correct tax planning.
VigoLex offers services for the development of cost-effective structures within the framework of the current legislation. We assess the current operating structure of a company or a group of companies, identify opportunities in order to reduce tax burden, calculate possible risks, prepare necessary documents and implement the chosen solution into the company activities.
Tax planning works both nationally (within one country) and internationally (building a transnational group of companies in order to optimize business processes and reduce tax costs).
The choice of jurisdiction plays an important role in international tax planning. If the country for the company registration is chosen incorrectly, tax planning may reach a deadlock
- Client’s wishes (obligatory).
- Regulatory requirements:
- requirements for business presence (substance requirements) for obtaining tax resident status;
- possible forms of the company organization, their pros and cons;
- requirementsto reporting filed by the company and its owners;
- peculiarities/difficulties of opening a current account for the company.
- Corporate taxation:
- amount of the effective profits tax rate;
- presence or absence of transfer pricing rules;
- presence or absence of a repatriation tax and the applicable conventional regime;
- peculiarities/difficulties of financing the company, in particular debt financing from abroad;
- presence or absence of double taxation conventions with the countries with which the company plans business operations and with the countries where the beneficial owners reside.
- Indirect taxation:
- presence or absence of indirect taxes applied to the company activities (VAT, excises and analogous expenditures);
- indirect tax rates (if any);
- peculiarities administering indirect taxes.
- Real cost of maintaining a company in the estimated jurisdiction:
- average cost of renting an office (if a physical office is one of the registration requirements);
- expenses for the director’s and other staff’s salaries (if the staff’s presence is one of the registration requirements);
- average cost of accounting services.
VigoLex lawyers will offer you the most favorable tax structure for your business, which will be optimal for you. We develop only solutions that can be implemented in practice.