Many of our clients are, or will expand to become, ‘international’ businesses.
If you are in this position you may be unsure of what considerations you need to take into account and whom you can turn to for assistance. In many cases, someone at Blick Rothenberg can offer the advice and support needed. We have many years of experience of helping companies expand overseas and have seen most of the issues you are likely to encounter.
Some of the scenarios we come across on a regular basis are outlined below:
International travel can be expensive, both in terms of time and money. Where the costs are significant businesses can reclaim of overseas VAT through the EU Directive Scheme.
How do you determine the VAT treatment of such sales? Depending on the nature of your supply (goods or services) and the location of your client/customer, you may be faced with issues such as Intrastat returns, distance selling thresholds, EC Sales reporting, the reverse charge procedure and triangulation.
Structuring your operations overseas
Should you operate through a branch of the UK parent or form a local subsidiary company? How should you finance the new operations (e.g. debt/equity) and how do you ensure you obtain a tax deduction for the borrowings and keep withholding taxes on the interest expenses to a minimum? How should you set your inter-company transfer prices and what documentation do you need to keep? We can help you address these issues whilst your team focuses on its new business.
Employing staff in a new territory
You will almost certainly have a local payroll reporting requirement. This may or may not require, for example, the establishment of a bank account, registration for social security and/or payroll taxes or the setting up of a pension provision. Blick Rothenberg already manages the operation of payrolls in more than 50 different countries.
Relocating staff to work overseas
Your employees are likely to require support, often with housing, subsistence, relocation, professional and educational costs. Tax rates can also differ significantly and employees are unlikely to accept a lower ‘take home’. These costs can rise quickly. Set against this can be the opportunity to structure the employment in varying ways, especially where this is considered in advance. Our expatriate tax specialists, part of our award winning international tax team, can advise on such issues across multiple jurisdictions.
Trading in a new country
You will need to consider when you have a ‘permanent establishment’, most commonly when you start to employ individuals or lease premises. You will then need to meet, often quite varied, local requirements regarding maintaining accounting records. We have helped clients manage all of this centrally, whilst allowing them online access to approve and view their accounting records.
Please see the contact details below for more information, or contact your usual Blick Rothenberg contact: