Structuring Your Cross-Border Investments for Success

When expanding internationally, the structure of your investments can make all the difference. Explore tax-efficient structures tailored to your business needs.

Here’s how to get started:

1. Choosing the Right Investment Structure

Evaluate the most suitable structure for your investments, including:

• Subsidiaries: Establishing a local company in the host country.

• Joint Ventures: Partnering with a local business to share risks and rewards.

• Branches: Operating directly in the foreign market without a separate legal entity.

• Holding Companies: Utilizing an intermediary in a tax-efficient jurisdiction to manage investments.

2. Maximizing Double Taxation Agreements (DTAs)DTAs prevent double taxation and foster cross-border trade. Analyze relevant treaties to:

• Reduce withholding tax rates on income.

• Provide tax credits or exemptions for taxes paid abroad.

• Clarify taxing rights for income generated abroad.

3. Managing Withholding Taxes Effectively

Design strategies that leverage reduced rates under DTAs and recommend tax-efficient jurisdictions to optimize your tax outcomes.

4. Ensuring Transfer Pricing Compliance

Establish compliant transfer pricing policies, maintain documentation, and adhere to global standards like BEPS Action 13.

5. Planning for Capital Gains Tax

Capital gains tax can erode profits from the sale of investments. Develop strategies to minimize liabilities and utilize DTAs to reduce burdens.

Craft a tax strategy that aligns with your business goals and maximizes returns through effective planning.

We at LEXeFISCAL specialize in structuring investments to ensure tax efficiency while meeting compliance requirements, tailored to your specific needs.

Contact us today:

Email: info@lexefiscal.com

Tel: +44 (0)208 092 2111