RSM International is a global top 10 network of international accounting and consultancy firms offering professional services, international corporate finance, corporate recovery, international tax and business advice services and forensic audits. These services are offered to companies in their own markets and internationally in over 70 countries.

Worldwide offices

London 20:50 New York 15:50
Hong Kong 03:50 Tokyo 04:50
Worldwide time zones

Did you know?

The Eiffel Tower has over 2.5 million rivets, 15,000 iron pieces, over 40 tonnes of paint and has 1792 steps to the top.

Double Tax Relief Planning

This service involves the structuring or restructuring of entities or the review of transactions to minimize the global amount of income taxes paid by the taxpayer individual or company. As with debt/equity planning, this service also remains relevant throughout the life cycle of the organisations involved.

Approach

Depending on which countries are involved, RSMi tax teams will make and implement their recommendations by

  • Evaluating the possibilities for global tax reduction under the taxation regimes involved, particularly of the parent company or its owners.
  • Under a foreign tax credit system, the parent company can only reduce its global tax rate to the rate in effect in its home country. However, under a system in which foreign income is partially or wholly exempted from home country taxation, minimizing each country’s tax is relevant to minimizing the effective global tax rate.
  • Identifying and strategically classifying all elements of foreign source revenues to maximize the possibility of claiming all foreign taxes paid as eligible foreign tax credits
  • Examining the feasibility of alternative holding company structures
  • Reviewing the effects of maximizing double tax relief upon other tax reliefs that may be available

Benefits

  • Under a foreign income exemption system, benefits are derived primarily from increased after-tax cash flow
  • Under a foreign tax credit system, benefits are derived both from increased after-tax cash flow and potentially from permanent tax savings resulting from the decrease of global taxes. For public companies, the permanent tax savings translates to better earnings per share.