Importance of Companies Complying with International and Foreign Tax Law?

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  2. May 5, 2013 6:19 pm

Importance of Companies Complying with International and Foreign Tax Law?

Why Companies Must Comply with International and Foreign Tax Law

For business people who operate around the world, there are lots of concerns that you must take into account. One of the extreme challenges associated with operating in the global economy is that you have to know more than just one set of laws. Those people running businesses should understand that countries like the Bahamas have no capital gains or income tax, while the United States features a capital gains tax just north of 10-percent and income taxes that depend upon a number of different factors. The most important takeaway from that is that laws can vary wildly depending upon where you operate, and a good attorney can help you understand these differences.

The consequences for not complying with international and foreign tax laws
When a business makes the conscious choice to do business in a certain place, that business consents to a number of things. Among them, the business consents to some of the laws of the country where it is selling its goods and services. This means that not paying the proper amount can lead to large fines that the company will have to pay. More than that, not understanding foreign tax law can leave a company without certain deductions that might save it money over the long run.

Hiring the best tax attorneys and accountants
Because of the vast differences in international tax law, the best bet is to grab the best lawyer you can find. A good international tax professional will keep up with all of the changes in the law, and this will allow you to focus on running your business. Likewise, having a good accountant on board can help you find the best deductions so that you will not end up paying too much in taxes to these foreign entities. A smart business man will know the value of a good attorney.

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