International Business Tax Council
International business taxation
International business development is accompanied by increasingly complex tax issues. Implementation abroad, establishment of subsidiaries, intra-group flows, transfer prices, international tax treaties or double taxation risks: each cross-border transaction requires a thorough tax analysis in order to secure the company's strategic decisions.
In an environment marked by the strengthening of tax controls, the automatic exchange of information between administrations and the reforms resulting from the work of the OECD, the use of a lawyer specialized in international taxation is a real lever for securing and optimising.
Why ask for international tax advice?
International business taxation is not limited to reducing the tax burden. It consists primarily of building an organisation in accordance with national and international legislation while anticipating the tax risks that could affect the development of the enterprise.
Each international project raises key issues:
- What is the best legal structure for overseas settlement?
- How to avoid double taxation situations?
- How to organize dividend, interest or royalty flows?
- Do intra-group transactions comply with transfer pricing rules?
- Is there a risk of permanent establishment qualification?
- What are the reporting obligations in each jurisdiction?
An analysis carried out upstream makes it possible to secure operations and avoid sometimes considerable financial consequences.
The main problems of international business taxation
Our firm supports French and foreign companies on all issues related to their international development.
International tax structure
The choice of legal structure is a decisive step in any international project. Holding, subsidiary, branch or permanent establishment: Each solution has different tax consequences which should be analysed before any decision is taken.
The aim is to set up an organisation consistent with the operational needs of the company while ensuring its compliance with applicable tax regulations.
International tax treaties
Tax treaties concluded between States allow tax duties to be distributed and the risk of double taxation to be limited.
Their application requires perfect control of the treaty rules in order to determine in particular:
- the State competent to impose profits;
- the conditions for withholding at source;
- how to eliminate double taxation;
- the tax residency criteria of the companies.
Transfer pricing
Transactions between companies belonging to the same group are subject to increased surveillance by tax administrations.
Our firm supports companies in:
- defining their transfer pricing policy;
- mandatory documentation;
- securing intra-group flows;
- assistance in case of fiscal control.
A consistent transfer pricing policy significantly limits the risk of tax adjustment.
Taxation of international flows
International companies face numerous cross-border financial flows:
- dividends;
- interests;
- fees;
- provision of services;
- management fees;
- intra-group financing.
Each flow must be analysed against tax treaties, withholding taxes and anti-abuse schemes to ensure the optimal flow of capital.
International VAT
International transactions also raise important VAT issues.
Our firm intervenes in particular on:
- intra-Community deliveries;
- intra-Community acquisitions;
- exports;
- imports;
- international services;
- reporting obligations.
Poor qualification of transactions can lead to significant VAT recalls.
Anticipating international tax risks
The strengthening of international mechanisms to combat tax evasion has profoundly changed the business environment.
Tax administrations now have particularly effective investigative tools through:
- automatic exchange of information;
- the devices resulting from the OECD BEPS project;
- enhanced reporting obligations;
- international cooperation between tax administrations.
In this context, every international structure must be conceived in a logic of conformity, transparency and legal certainty.
Strategic support for international groups
Our firm works with:
- SMEs in the internationalisation phase;
- ETIs;
- international groups;
- Holdings;
- foreign investors;
- leaders developing activities in several states.
Each mission is the subject of a customized approach that integrates the legal, fiscal and economic issues specific to the enterprise.
Our areas of intervention
We support our clients in the following areas:
- international tax structure;
- Establishment of subsidiaries and holding companies;
- taxation of international groups;
- international tax treaties;
- transfer pricing;
- International VAT;
- taxation of foreign investment;
- assistance in international tax controls;
- international tax disputes;
- securing external growth operations.
Custom support
International taxation is now a central element of the business development strategy. Adapted structuring not only optimizes international flows, but also prevents tax risks that could jeopardize group growth.
The Cabinet Édouard Pruvost supports French and international companies in all their international tax issues by offering legally secure solutions, in accordance with applicable regulations and adapted to the strategic objectives of each customer.
