The process in determining where or how an entity would be taxed is call international taxation. They could be taxed either by one or both of the countries depending on the laws stated by these different countries. The determining factor between them is usually the treaties they have with each other.
Many companies want to take advantage of these laws to prevent paying double or more than necessary. The international corporate tax planning Canada has is a good example on how to determine where the company must pay. You must be able to understand this to fully use this to your advantage.
Canada uses a mixture of management and control, and incorporation standard. What this means is that the company must be incorporated in the country it is located to be considered tax resident. When they are not incorporated there but in another country although management and control is still exercised there, then the company is still considered a tax resident.
If you want the company you have to be nontaxable legally in Canada then the incorporation must have happened in another country. Management and control must also be done in another country as well. These include the highest decisions made and their bank accounts must not be inside the country.
To better understand these concepts and to help you with all legalities, you could acquire the services of a law firm specializing on these. They could guide you in preparing the required documents needed in determining if you are taxable or not. Here are some advises when looking for one.
Ask recommendations from your business partners and colleagues. You may also ask the lawyers you have currently if they offer services for theses or knows some people who do. Recommendations from trusted people would save you resources and time to be used for background check of the lawyer.
Ask about the experiences they had regarding similar issues to yours. They could give you examples of companies they are working with currently. Having a good amount of clients is a good sign specially if some of them are the prominent companies. If you happen to know a client of theirs personally then you could try approaching him and asking him on his opinion on the service that the law firm has given to him.
Inquire about the legal fees and other specialization they are offering in other areas of corporate law. Having one team only to manage corporate law related needs you have is better as to prevent misunderstandings and errors which could cause issues with government agencies. They will be working also with your finance and accounting department to properly know which is taxable and not.
This is just a short description and few advises on what you could do to maximize the earnings of your company by legally minimizing the taxes you should pay. There are many professional lawyers that are willing to offer their services to you when needed. Ask them more information about the things that still confuses you. Different countries have different treaties with Canada so it is best that you would be able to find someone who is also an expert of the laws and treaties of that other country as well.
Many companies want to take advantage of these laws to prevent paying double or more than necessary. The international corporate tax planning Canada has is a good example on how to determine where the company must pay. You must be able to understand this to fully use this to your advantage.
Canada uses a mixture of management and control, and incorporation standard. What this means is that the company must be incorporated in the country it is located to be considered tax resident. When they are not incorporated there but in another country although management and control is still exercised there, then the company is still considered a tax resident.
If you want the company you have to be nontaxable legally in Canada then the incorporation must have happened in another country. Management and control must also be done in another country as well. These include the highest decisions made and their bank accounts must not be inside the country.
To better understand these concepts and to help you with all legalities, you could acquire the services of a law firm specializing on these. They could guide you in preparing the required documents needed in determining if you are taxable or not. Here are some advises when looking for one.
Ask recommendations from your business partners and colleagues. You may also ask the lawyers you have currently if they offer services for theses or knows some people who do. Recommendations from trusted people would save you resources and time to be used for background check of the lawyer.
Ask about the experiences they had regarding similar issues to yours. They could give you examples of companies they are working with currently. Having a good amount of clients is a good sign specially if some of them are the prominent companies. If you happen to know a client of theirs personally then you could try approaching him and asking him on his opinion on the service that the law firm has given to him.
Inquire about the legal fees and other specialization they are offering in other areas of corporate law. Having one team only to manage corporate law related needs you have is better as to prevent misunderstandings and errors which could cause issues with government agencies. They will be working also with your finance and accounting department to properly know which is taxable and not.
This is just a short description and few advises on what you could do to maximize the earnings of your company by legally minimizing the taxes you should pay. There are many professional lawyers that are willing to offer their services to you when needed. Ask them more information about the things that still confuses you. Different countries have different treaties with Canada so it is best that you would be able to find someone who is also an expert of the laws and treaties of that other country as well.
About the Author:
When there is a need for assistance with international corporate tax planning Canada citizens can always count on our website. Come and get complete details and information by visiting us right away at http://www.taxca.com.
No comments:
Post a Comment