International Tax

International Taxation | International Taxation Consultants

• Do you have a business in two different countries?
• Have you structured your operating and holding companies considering the tax laws of each of the countries you have a business relationship in?
• Are you aware of the tax, accounting, and regulatory requirements of each jurisdiction where you have business relationships?
• Do you wish to expand your business globally?

International Tax Planning, which means managing the complexities of multiple tax regulations around the world is what you would need.

It is one of the vital aspects of any business, especially when business demands cross-border transactions or global expansion.

What is International Taxation?

International Taxation means adhering to varied tax laws of a different jurisdiction when an entity undertakes cross-border transactions.

It includes the application of tax laws in the respective jurisdictions and determining tax obligations of entities in the affected jurisdictions.

In general, an entity needs to determine the tax expenditure in each jurisdiction of its operation and its exposure to tax liabilities in the jurisdiction in which it conducts its business.

Economic Substance Regulation [ESR]

Economic Substance Regulation is another compliance requirement for entities registered in the UAE. The United Arab Emirates (UAE)

Tax Residency | Tax Domicile Certificate

Tax Residency Certificate (TRC) also known as Tax Domicile Certificate is an official document issued by the Tax Authorities in the UAE.

Ultimate Beneficial Owner [UBO]

The necessity of identification of Ultimate Beneficial Owner has gained momentum across the globe with an increased International focus on tax

Why is International Taxation is gaining importance now in the UAE?

UAE, a most rapidly growing business hub, is the gateway between the Asia Pacific and Europe for cross-border transactions. Hence International Tax Planning is a very important matter for most of the businesses operating in this region.

To improve international competitiveness, the UAE started shifting towards a taxation economy that encourages transparency and improves economic diversification. The UAE introduced Excise Tax in the year 2017 and Value Added Tax (VAT) in 2018. Subsequently, there are many developments with respect to improving international tax compliance in the country which are commendable and necessary.

The UAE has given a green signal to the internationally agreed standards on exchange of information for tax purposes both “EOIR” (Exchange of Information on Request (‘EOIR’) and Automatic Exchange of Information (from OECD)

The UAE is largely compliant with the requirements of CRS (Common Reporting Standards) as well as FATCA to improve international tax compliance and international tax reporting.

The United Arab Emirates joined the Inclusive Framework of BEPS (“ Base Erosion and Profit Shifting ”) on 16th May 2018 and became the 116th jurisdiction on the list. Hence the UAE is committed to implementing BEPS 4 minimum standards. In the year 2019, UAE implemented the following two regulations;

• Economic Substance Regulation through the Cabinet Resolution no 31 of 2019. [Economic Substance Regulation is a part of Action 5 of the Base Erosion and Profit Shifting]
• Country by Country Reporting – CbCR legislation through the Cabinet Resolution no 32 of 2019. [CbCR is a part of Action 13 of the Base Erosion and Profit Shifting (BEPS)]

Now the United Arab Emirates is committed to the relevant overseas authorities to report within the timelines.

Our international tax services in UAE include,

• Corporate Tax – International level Advisory Service
• International tax planning for entities
• Initiating new business
• Expanding business into a new jurisdiction
• Analyzing special Cross border transactions
• Global capital structure planning, including efficient cross-border finance, repatriation of funds, and cash access planning
• Analysis withholding tax implications in each jurisdiction considering the Double Tax Avoidance Agreement in force
• Transfer pricing Compliances
• Guidance and Support for Compliance related to International Tax Reporting
• Global Tax Compliance Management
• Advisory Service on Tax for Expatriates
• Personal Tax Advisory Service