<h2 class = 'uawtitle'>Tips For International Corporate Tax Planning Canada</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Sarah Davis</div><br /><br />
<div class='uawarticle'>Multinational companies and firms that have moved their operations to a foreign country must pay taxes to the host and origin countries. Such considerations require a lot of planning to ensure that this process is carried out according to the policies that have been established. Here are tips for <a href="https://www.taxca.com/areas-of-practice/">international corporate tax planning Canada</a> that one should take note.<br />
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Acknowledge the structure of your corporate. Companies which have achieved a fully-fledged status are the ones which are usually required to pay their taxes. A fully-fledged company is expected to have a couple of operations such as manufacturing, accounting, customer services, and legal operations all the same time. Those which are established as a single operation are exempted to certain duties since they do not have transfer pricing, inter-company pricing, and a market data.<br />
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Take note of tax-free income. Some countries allow tax-free income in foreign companies to assist them in their operation. You should take note of the regulations that are established in relation to such income to avoid being held liable for your mistakes. In most cases, income that is earned outside the residence country is not subjected to duty and should be kept abroad.<br />
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Take note of regulations that have been established in the country that the firm is residing. A good number of countries expect compliance in goods and service tax and value-added tax as well. Some might go further into taxing the income that has been made together with the gross receipt. Make sure that the valuation expert and the taxation professional acknowledges the entities that are under the duty regime.<br />
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Consider taxation that applies in transfer pricing. Most international companies engage in cross-border transactions to ensure that their operations are efficient and obtain cost efficiency. You need to have a proper transfer pricing planning, audit support and documentation to reduce possible tax risks and achieve a remarkable overall economic result.<br />
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Take note of liabilities and non- operating assets. Non-operating assets are properties that are owned by a particular company but are not operational. This includes excess land and other non-functional assets. On the other hand, liabilities include duty reserves, loan guarantees, and duty assets. Corporate should indicate the non-operating assets in the balance sheet to avoid being taxed. They can be considered as taxable assets if they are not indicated in the balance sheet.<br />
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Beware of investments in subsidiaries. Multinationals usually start as small holding companies before they become a fully-fledged international corporation. Reporting for such entity can be daunting since it does not meet the required ownership structure. However, they can be subjected to taxation in various ways. This include reporting historical financial information inclusive of all investments in subsidiaries. Besides that, reporting can be done using the equity method of accounting.<br />
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Ensure that your documents are accurate. Taxation relies heavily on the information provided by a corporate in its report. Therefore, one should ensure that such documents provide accurate information about its finances. Some of the documents that should be included are foreign income, proof of the duties that have been paid and exemptions. Consider the help of a tax lawyer, auditor, and valuation professional to ensure that the report is done in the right manner.<br />
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<div class='uawlinks'>You can get valuable tips on how to pick a tax accountant and more information about a professional who offers <a href="http://www.taxca.com/areas-of-practice">international corporate tax planning Canada</a> services at http://www.taxca.com/areas-of-practice now.</div><br />
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