If you haven’t tuned in to international tax yet, the ongoing tax year may be the time do finally do it. Multinational companies doing business in the U.S. and in other countries or that want to branch out to the U.S. are faced with more challenges than ever, it would seem.
Although the global market and international cooperation is booming, company executives in Washington DC and throughout the U.S. are relying on their tax directors and tax lawyers with a background in international tax law for advice and strategy.
Here are some of the challenges of international taxation that are best resolved with the assistance and representation of a tax lawyer serving Washington DC and other major districts and counties in the U.S.
Interpreting the U.S. tax reform
With the latest U.S. tax reform slashing the corporate tax rate from 35 percent to 21 percent, the companies have already started reassessing their balance sheets. It is believed that the U.S. will become an even more attractive destination to do business, prompting new investments and business operation launches from foreign companies.
As for the foreign-owned companies doing business in Washington DC and elsewhere in the U.S., the effects of the reform are yet to be seen as the year progresses.
Regardless of whether you are a foreign company earning income in the U.S. or a domestic company trying to obtain a sustainable effective low tax rate, you would greatly benefit from the insights of a tax lawyer with a background in international tax law. An international tax attorney can interpret the new changes to the law, also accounting for the implications and possible effects on your bottom line.
Country-by-country tax reporting
Country-by-country (global) reporting is a way of providing a clear overview of a multinational’s activities, accounting for all individual countries in which they operate. While multinationals in over 40 countries have already filed their global tax reports, multinationals with headquarters in the U.S. are to file the reports by the end of 2018.
Although these global reports are currently private, some companies like Vodafone plan to make their country-to-country report public by publishing it with explanatory notes. The company wants to build more trust in their business and brand.
Other multinationals with headquarters in Washington or elsewhere throughout the U.S. might follow in their footsteps. If you are contemplating such a move, consulting an experienced international tax lawyer is advisable to make sure you achieve transparency but protect sensitive data.
Taxing internet-based businesses
More and more businesses are not only establishing their operations across the globe, but are using the internet to do so. As a result, digital economy is on the rise with a burning question still unresolved: how to tax an internet-based business? The issue was partly addressed in BEPS – OECD/G20 Base Erosion and Profit Shifting package. An interim report on the results obtained so far will be presented in April 2018, with the final report on resolving the issue of taxing digital businesses is expected in 2020.
If you are an online-based business, partly on in full, you will be affected by the ensuing implications, which is why you should seek advice and representation from a lawyer that not only specializes in international tax, but also keeps abreast of all the novelties in the digital economy sphere.
Tax lawyer specializing in corporate and international tax law
Brunoro Law boasts the principal attorney Paula Brunoro-Borokhov, a well-established attorney with specialties in international and corporate tax law. Attorney Brunoro-Borokhov is licensed in the United States and Brazil and is fluent in English, Spanish, Portuguese and French. She is the go-to attorney for foreign companies wanting to establish business in the U.S., U.S. companies planning to do business in South America or overseas, and any entity needing expert legal representation in tax matters.
Reach out to Brunoro Law for a no-fee no-charge 1-hour consultation.