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Easy tax efficient solutions with numbro

Get solution to every international tax dispute or for building a strategy with numbro's professionals

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    STEP 1

    we understand and obliges the tax treaties in different counties

    INTERNATIONAL TAXATION

    Today businesses are going global. Multinationals do not hesitate to expand their businesses abroad and get listed on the overseas bourses. They look forward to invest or establish themselves in foreign countries. Therefore, for enhancing growth and success opportunities, it is vital that these companies understand the tax and regulatory policies of the country where they are operating. They need to stride through an interplay of cross-border taxes and regulations.

    International taxation in simple words means the study of taxation system beyond the national level. With globalization, study of international taxation has become an integral part of doing business.s

    International tax provisions like Double Tax Avoidance Agreement (DTAA) provide relief to individuals and businesses from the double taxation of income in domestic and foreign country.

    Numbro’s Role

    A branch office in India can earn revenue from sales made in the local market and repatriate the profits to the parent company.

    It is beneficial for foreign companies which are willing to have a temporary office setup in India and do not have long term business operation plans in India.

    It is incredibly cost-efficient. Branch office is small in size and has limited annual turnover, hence the tax liability is less. Also, because of fewer operations, the overhead cost is also less.

    Frequently Asked Questions:

    What is International Taxation?

    International taxation is the determination of the tax liability on a person or a business subject to the tax laws of different countries or studying the international aspects of an individual country’s tax laws.

    But with transfer pricing law in place, a transfer price in case of purchase transaction should match with what the seller would normally charge an independent, arm’s length customer, and in case of sale what the buyer would normally pay to an independent, arm’s length supplier.

    To whom does International Taxation apply?

    International taxation applies to every individual or business earning any income in the foreign country or doing any business transaction with the foreign companies.

    Why is International Taxation important?

    International taxation is important because of following reasons:

    • It facilitates globalization and exchange of information
    • It promotes investment and mutual relations between two or more countries
    • It facilitates cross-border transactions and thereby enhances growth opportunities
    • It prevents tax discrimination
    • It defines taxing rights among countries
    • It avoids conflicts like double taxation of income
    • It prevents tax evasion

    What is Double Tax Avoidance Agreement (DTAA)?

    Double Tax Avoidance Agreement (DTAA) is an agreement between two or more countries for avoiding double taxation of income of an individual or business. DTAA helps to resolve the issues of taxability of income and increases transparency to avoid any kind of tax evasion. Moreover, DTAA encourages the free flow of international Trade and Investment.

    What services come under international taxation?

    Following services come under international taxation:

    • International transfer pricing
    • International corporate tax planning and advisory
    • Expatriate tax advisory and compliance services
    • DTAA interpretation and advisory services
    • Advisory on latest tax-related regulations
    • Advice on taxability of income
    • Foreign tax credits issues
    • Representation before tax and judicial authorities during assessment and appeals
    • Advisory on withholding tax, assistance in seeking advance rulings on international tax issues

    Numbro is a renowned international tax consultant in India. We are a profession firm providing all the above mentioned services.

    What happens when the report and documentation are not prepared, maintained or filed by a company?

    On account on (of) non filing of the report, a penalty of Rs. 1 lakh is leviable.

    On account of non-maintenance or non-preparation of the Transfer Pricing documentation, penalty leviable is 2% of the total international transaction value.

    On account of non-filing of the Transfer Pricing documentation, a further penalty of 2% of the total international transaction value is leviable.

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