With increased focus of tax authorities globally on BEPS implementation measures, disclosure norms (DAC6, CBC reporting) and the focus on taxation of digital business models, it has become practically difficult for multinational companies to determine and monitor the ever-evolving tax rules that apply during all phases of a cross-border project or activity. Tax regulations as well as administrative obligations and cost that may be relevant for a project, whether short-term or long term, need to be taken into account and examined in the offer phase for such project due to the impact they could have on the structure and execution of the project.
Entities need to have an agile tax strategy in line with their corporate goals in order to have a global competitive edge in today’s market. This includes having robust policies for cross border operations, local statutory/reporting requirements and planning of applicable effective tax rate to achieve efficiencies adherent to a company’s risk profile.
We assist with the determination of the tax consequences and other impacts for cross-border projects. We further help our clients structure their activities in the most efficient way to minimize tax expenses and risk exposure. We advise clients in identifying the relevant tax factors beforehand and include them into their project calculations. Subsequently, further support may be required in contract negotiations or contract reviews pertaining to tax
clauses and other tax relevant aspects of contracts may be given.
Some concerns company management might have in relation to a cross-border project or activity:
- How should they structure operating companies and where should the holding company be located (considering, tax efficiencies achieved, sustainable structure and future foreign investor attractiveness)?
- What are the tax residency rules and substance requirements in a particular jurisdiction?
- Are there any risks of creating a deemed permanent establishment in a jurisdiction?
- What are the tax costs and benefits of entering into a new market?
- What are the tax, accounting and regulatory requirements?
- How should operations be financed in tax efficient way?
- Are there any tax incentives available if the operations are established in a particular jurisdiction?
- What is the impact to the effective global tax rate considering a foreign subsidiary’s local income tax, foreign withholding taxes and the foreign tax credit in home country?
How can we help?
WTS Dhruva’s team of tax professionals have advised clients on the following areas
to help navigate the complex global tax environment
- Managing complexities of multiple tax systems and regulations
- Country and permanent establishment analysis
- International group restructuring
- Coordination of international tax reporting and global compliance management
- Group tax health checks
- Global capital structure planning, including efficient cross-border finance, repatriation and cash access planning
- Withholding tax implications for cross border transactions
- Entry/Exit strategies
- Transfer pricing planning and documentation support
W T S Dhruva Consultants provides comprehensive range of services in tax and zakat function. We provide practical solutions on corporate tax and zakat issues to help our clients meet management objectives and thus, help in managing the costs associated with tax / zakat management function. We offer following services to our clients:
Tax / zakat compliance support
We assist companies in preparation, review and filing of tax / zakat declaration in the region which involves the following key steps:
- Coordinate with your team in preparing tax / zakat declaration including detailed schedules required in support thereof;
- Assist in certifying the tax declaration in case where taxable revenue exceeds the prescribed threshold of SAR 1 million;
- Translate the tax / zakat return and schedules into Arabic;
- Complete tax / zakat return into ERAD system;
- Assistance in submitting tax / zakat return into ERAD system;
- Advice with respect to quarterly advance tax payments;
- Assistance in filing “Contract Information Form”.
Tax / zakat advisory
We provide wide range of tax / zakat advisory services that will include:
- Advising Companies to structure its business in a tax / zakat efficient and compliant manner;
- Assist Companies in framing their contracts in compliance with tax policies;
- Ascertaining the impact of new tax / zakat matters that pertain to clients’ business;
- Assist the Company in health check.
Withholding tax consultation and compliance support
- Review of contracts and advise on withholding tax implications;
- Assist in preparing monthly and annual withholding tax return;
- Assistance in submitting the withholding return into ERAD system.
Tax / zakat representation before the General Authority of Zakat & Tax (‘GAZT’)
- Assist the Company in the field inspections;
- Assist the Company in review, prepare, translate and file response to the GAZT queries including review of the supporting documents;
- Follow-up and obtain the final assessment;
- Assisting and advising on assessments, objections and appeals process and results.