Is your global tax function keeping up with international tax requirements?

So, your company is expanding into new markets, and you’re faced with a raft of changing tax regulations. Sound familiar? Managing international taxation is a constant challenge for multinational companies.

Tax laws change frequently. Global expansion only adds complexity. Finance and tax leaders must stay competitive on a global scale.

A strong international tax capability is no longer optional, it’s essential.

Neeraj Nagarkatti, Associate Operating Partner and Angelo Chirulli, Operating Partner, have looked into why you need a strong international tax capability and how they can support you in strengthening your global tax function.

What’s the situation?

The global tax landscape keeps shifting. Governments are tightening tax rules to curb avoidance. As your company expands, complexity grows. Here’s a look at key developments shaping international tax today.

Globalisation

Cross-border transactions create new tax hurdles. You must understand tax rules in every market to avoid costly mistakes.

Tax laws and treaties

The OECD’s 2021 global minimum tax agreement changed the tax game. Staying compliant now requires constant adaptation to evolving global standards.

Digitalisation

Digital services and cross-border e-commerce have added more tax layers. Countries are imposing digital services taxes and updating VAT rules. Staying ahead is crucial to avoid penalties.

Transfer pricing

Strict transfer pricing rules demand adherence to arm’s length standards for intercompany transactions. Regularly updating your policies mitigates risk and ensures compliance.

Increased scrutiny

Tax authorities worldwide are scrutinising international transactions more closely and sharing taxpayer information across borders. A proactive tax strategy reduces your risk of audits and penalties.

What can you do?

Stay informed

Monitor changes in international tax laws. Anticipate risks and seize opportunities to keep your tax strategy ahead.

Evaluate your tax strategy.

Regularly review your strategy to ensure it aligns with new regulations like the global minimum tax and BEPS. Reassess your transfer pricing policies to stay compliant.

Train your team

Keep your finance and tax teams up to date with ongoing training. They need to handle emerging issues like digital services taxes and BEPS compliance.

Leverage technology

Use tax software to simplify compliance, reduce errors, and manage VAT and cross-border transactions more effectively.

Improve internal coordination

Ensure clear communication between your global and local teams. This unified approach strengthens decision-making and improves tax planning.

Consult specialists

Complex tax issues often require professional guidance. Working with specialists ensures your tax strategy stays compliant and optimised. Contact Neeraj and Angelo through our website for tailored support to stay compliant, reduce risks, and achieve significant savings.