The world is undergoing a rapid metamorphosis, with concomitant changes affecting the business landscape. With numerous entrepreneurs on the receiving end, this global trend involves the tightening of control by tax authorities in different countries, intended to counteract profit shifting. In view of the above, groups of companies trying to expand their presence outside of Ukraine and foreign investors taking their first steps in the Ukrainian market are in need of a realistic tax risk assessment and reasonable planning of their tax burden
Deloitte Ukraine's International Tax team helps our clients to properly structure international groups of companies, plan operations, and manage risks that accompany doing business in different jurisdictions, based on the clients' wants and wishes as well as their business specific
- Identification of risks linked to new regulatory requirements
- Restructuring of international groups of companies
- Creation of corporate structures with a foreign component
- Tax and legal analysis of cross-border operations
- Other services
Identification of risks linked to new regulatory requirements
Lately, tax authorities across the globe are increasing their efforts in combatting fraud involving preferential tax treatment for international transactions. Requirements for countering such fraud are implemented both nationally and internationally, which reduces the efficiency and applicability of traditional mechanisms of and approaches to tax planning.
In light of such changes, it is necessary to timely identify and mitigate tax risks that may impact business, including that of challenging the tax benefit application provided for by double taxation treaties, etc.
One of the most popular questions is how to ensure the required presence of a company in a foreign jurisdiction, both in terms of compliance with local legislation and risk mitigation of a failure to apply preferential tax rates of withholding tax on relevant income. Our team will gladly share their knowledge and recommend best practices for creating and protecting the economic “substance” of the company.
Restructuring of international groups of companies
Quite often, companies are forced to make significant changes to their existing structures to optimize business processes and ensure compliance with the requirements of regulatory authorities both in Ukraine and abroad.
Attracting investors, entering capital markets, and receiving funding from international banking institutions require significant changes in the corporate structures of businesses.
During the restructuring of a group, it is necessary to consider not only the tax legislation of Ukraine and respective jurisdictions, but also global trends. These trends include simplification of structures by reducing the number of foreign jurisdictions used, creation of a single asset management center abroad by numerous groups, change of the business financing model, etc.
Through careful planning of the restructuring process, our team will help to predict risks and offset adverse effects at different stages of restructuring.
Creation of corporate structures with a foreign component
During the expansion of business to new markets, it is very important to consider all the tax and legal specifics of the oversees activities of a group's companies, the consequences of profit distribution from Ukrainian companies to foreign parent companies for the purpose of further reinvestment, as well as to assess the need to migrate or recruit personnel carrying out activities aimed at generating profit by the companies of the group.
Our team will provide advice on choosing the legal form of presence abroad, advantages of setting up a holding, commercial, operational or financial company in any jurisdiction in terms of taxation, as well as advice on selecting operating models that meet the objectives of a specific business. We can also analyze the specifics of conducting operations in different jurisdictions related to intellectual property, as well as the availability of special tax treatment of income from such activities (if required).
Tax and legal analysis of cross-border operations
With increased attention from tax authorities in different countries on international operations related to the acquisition of assets or companies abroad, including the creation of joint ventures, the consideration of all possible risks, including those related to taxation and fulfillment of all obligations, becomes increasingly important.
When planning operations, it is necessary to take into account, among other things, the importance of choosing the most advantageous option for financing such operations, integrating the received asset or business within the group, or finding the most optimal way to repatriate generated profit from the viewpoint of taxation.
Apart from the above, our team will gladly help you deal with any other issues related to international tax by conducting training sessions and conferences on international taxation and tax planning, providing regular advisory support, as well as preparing contractual and other documentation to mitigate potential tax risks.
Among others, our advantage is a combination of in-depth technical knowledge and rich experience of our professional network in more than 150 countries.