How much does an outsourced tax department cost?

The cost of an outsourced tax department depends mainly on the complexity of the company, its international dimension and the level of intervention expected.

Unlike one-off consultation, the company does not only pay for the treatment of a specific question. It benefits from a permanent tax support, allowing for the anticipation of decisions, the monitoring of the main risks and the availability of an interlocutor who knows the organisation of the group.

The firm Edouard Pruvost offers this type of accompaniment From 5 000 € HT per month, as part of an annual commitment.

What does an outsourced tax department include?

The content of the mission is defined according to the needs of the company.

It may include:

• a strategic tax review of the organisation;

• identification and prioritization of the main tax risks;

• the development of an annual roadmap;

• regular exchanges with the Directorate-General and the DAF;

• upstream analysis of decisions with significant tax consequences;

• monitoring of international tax issues;

• supervision of intra-group flows and transfer pricing;

• coordination with the accountant and other advice;

• anticipation of acquisitions, restructurings, financing or disposals.

The aim is therefore not to increase consultation but to integrate taxation into the company's decision-making process.

What criteria determine the level of fees?

The turnover of the undertaking alone is not sufficient.

An SME carrying out an international activity may have a greater fiscal complexity than a much larger company but organised around a single French company.

Fees include:

• the number of companies in the group;

• the number of countries concerned;

• the importance of intra-group flows;

• transfer pricing issues;

• the frequency of strategic operations;

• the necessary level of coordination with foreign councils;

• whether an internal tax team exists.

An international group with several subsidiaries and large flows will naturally require more support than a company with a simpler organisation.

Why compare the cost with that of an internal tax function?

When a company starts to meet regularly with important tax issues, it can be led to consider hiring a tax director.

Outsourcing provides immediate access to senior expertise without the constraints of recruitment, integration of a new employee and creation of an additional internal function.

It is particularly suitable when the issues require a high level of expertise, but the workload does not necessarily warrant a full-time daily tax presence.

The company thus adapts its tax resources to its real needs.

Are exceptional operations included?

The externalised fiscal direction is mainly based on a permanent pilotage.

However, some transactions may require significant specific diligence: acquisition, disposal, complex restructuring, tax control, audit or specific transfer pricing documentation.

These interventions may then be the subject of a complementary mission.

This distinction makes it possible to maintain an annual plan adapted to the company's current operation while mobilising additional resources when necessary.

An equally relevant solution for large companies

An outsourced tax department does not only concern businesses without a tax director.

A large company with an internal tax department may wish to receive ongoing support on certain particularly specialised issues, such as international taxation, transfer pricing or cross-border transactions.

The intervention then constitutes a reinforcement of the existing Tax Directorate, without requiring additional full-time competence.

How to determine the right level of support?

The cost of an outsourced tax department must be assessed against the real issues of the group and the level of intervention expected.

The aim is not to artificially reproduce an internal tax administration, but to build an organisation commensurate with the complexity of the enterprise.

Edouard Pruvost offers outsourced strategic tax management support from 5 000 € HT per month as part of an annual commitment.

To determine the most appropriate perimeter for your business or group, contact the firm to organise a first confidential exchange.