AI 2018 Business Excellence Awards

Acquisition International - 2018 Business Excellence Awards 7 • Controlled Foreign Companies legislation The legislation is designed to prevent low tax jurisdictions benefiting from UK profits • Withholding taxes This is a tax deduction in wages, paid directly to the government • Transfer of Assets Abroad The Transfer of Assets Abroad (TOAA) prevents UK nationals using foreign transfers to save on tax • Thin capitalisation Thin capitalisation is where a business is financially boosted via a high level of debt compared to equity • Structuring of operations including the foreign branch exemption UK businesses can apply for profits of their branches abroad to be exempt from UK taxation • Double tax treaty issues Bilateral tax treaties alleviate double taxation when it happens - most EU countries have this in place • Corporate tax residency HMRC are seeking to maximise tax during this currently unstable economic time • Operation of the UK R&D and Patent Box tax regimes Businesses can apply for a lower corporation tax rate for profits made by patented inventions. There are many key benefits for a business in setting up a branch abroad, including tax savings that can be found in the government incentives of the country you choose to move to. Differing countries are sure to want to attract your business and a branch abroad offers access to a potentially untapped market, an increase in global brand identity and better business recognition and support in a more encouraging environment. Seeking expert tax advice will allow you to watch out for the pitfalls and take advantage of the opportunity to expand and grow your business.