Global positioning – Planning helps avoid international tax surprises
Abstract: Technological advancements have made global markets accessible to even the smallest businesses. But this doesn’t mean doing business internationally is easy. In fact, it’s a complex process that requires a company to establish the necessary infrastructure, develop an understanding of foreign cultures, and prepare for a new tax environment. But careful tax planning can help businesses set up international operations in a manner that minimizes worldwide taxes and maximizes cash flow. This article looks at corporate structure, income tax withholding and credits, and indirect taxes, while a sidebar discusses the interest charge–domestic international sales corporation (IC-DISC).