Cross Border Taxation
With the advent of globalization and technological advancement, the world has shrunk to a global village wherein no destination is inaccessible. Consequently, business houses around the world have become global in their operations and have been expanding their businesses beyond the boundaries of their countries into new markets in order to achieve growth. ASC provides consulting and advisory on Cross Border Taxation Services while also advising corporate and non-corporate clients on tax planning and management.
Cross Border Taxation Laws and Regulations
We are living in a time where change is the new normal and the ability to adapt to the new normal is important for survival. Cross Border Taxation Laws and regulations are also continuously changing to stay abreast of the changing dynamics of business requirements and the way of doing business.
Tax is an important part of every business and practically impacts every strategic business and commercial decision. Therefore, it is imperative to maintain the right balance between the two in order to increase the stakeholders’ value.
Our team of professionals understands the tax environment in India and stays constantly abreast of the changes in tax policies, administration, and regulations. We assist our clients not only in developing effective Cross Border Taxation strategies but also implementing them efficiently. We have extensive experience in advising our clients in domestic, international, and cross-border transactions. We support our clients in tax planning, litigation support, representation before the tax authorities, compliances, and filings.
How ASC Help?
- Advising corporate and non-corporate clients on Cross Border Taxation planning and management including identification of risks, planning opportunities, and compliance requirements;
- Advising multinational groups on their investments in India from a tax and regulatory perspective;
- Advising multinational groups to minimize their tax incidence in India after analyzing the provisions of the treaty, categorization of income, and permanent establishment risk;
- Advising foreign companies on taxability on Liaison Offices, Branch Offices, and Project Offices;
- Advising on emerging and recent regulations such as:
- General Anti-avoidance Rules;
- Place of Effective Management;
- Base Erosion and Profit Shifting;
- Advice on Multilateral Instruments; and
- Equalization levy.
- Statutory compliance support
- Income tax and Withholding tax (TDS) returns
- Advance Tax
- Tax exemption certificates for lower TDS deductions;
- Certification work including the issuance of various certificates and Audit Reports under the Income-tax Act;
- Representations before income-tax authority, dispute resolution panel, and CIT(A) & litigation support up to Supreme Court;
- Regular updations on recent amendments, notifications, circulars, and judgments;
- Foreign tax credits issues.
FREQUENTLY ASKED QUESTIONS
Cross border taxation basically refers to the set of provisions, rules, and regulations that govern international transactions. Cross border taxation services are crucial for every individual and organization that is involved in international transactions.
There are various cross border taxation issues faced by clients engaged in international business. This includes determining the residential status, managing the foreign tax credits, determining the taxability of the transaction as per DTAA, navigating the transfer pricing rules and ensuring compliance with the taxation laws and transfer pricing regulations.
Cross border taxation services include tax planning, managing foreign tax credits, taxation compliance, reporting, and dispute resolution.
Some of the important regulations and agreements important in cross border taxation include:
- Double Taxation Avoidance Agreement
- General Anti-Avoidance Rules
- Base Erosion and Profit Sharing
- Equalisation Levy
- Multi-lateral instruments and contracts
- International Tax Laws
International tax planning involves planning and developing strategies to reduce tax liability. It involves utilising the provisions and regulations of international tax laws and treaties to ensure and minimise tax obligations.
A tax treaty is an agreement between two countries that sets out the rules for taxation of income and other taxes for individuals and businesses that operate across borders. Tax treaties help to reduce double taxation and provide a framework for resolving disputes between tax authorities in different jurisdictions.
Taxpayers can comply with cross-border tax laws by:
- Understanding the tax laws and regulations in each jurisdiction where they conduct business or earn income
- Maintaining accurate records of income and expenses
- Seeking the advice of tax professionals to ensure compliance with tax laws
- Making use of available tax treaties and agreements to minimize tax liabilities
- Being transparent with tax authorities about their business operations and income sources.
