What is the key to an effective international tax strategy?
To do international tax planning properly, a company has to develop a global tax strategy that facilitates its global business objectives. The starting point is developing a solid understanding of a company’s business and financial position, its international operating strategy, and where and how it intends to operate outside the U.S. With this knowledge, an international tax consultant can help a company develop an overall global tax strategy that makes good business sense and is practicable. International tax planning for specific situations can then be approached in a coherent manner, taking into account the company’s broader global tax and operating strategies. Do international tax rules provide incentives for companies? Yes, there are significant cross-border tax incentives available in the U.S. and abroad. A key U.S. incentive for exporters is the IC-DISC (Interest Charge Domestic International Sales Corporation). Although this incentive has existed for more than 35 years, many U
