Tax planning

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Tax planning is a concept implemented by most major financial corporations, a concept which has become essential for small and medium-sized companies with international activity and beyond.What is tax planning:

  • Tax planning is the use of laws in order to increase business stability.
  • Tax planning does not mean just a tax reduction as originally thought, it can be used to give stability and define the paths to follow in order to achieve a constant and secure plan of your business in the future.

For example, a non-EU company wants to enter the EU market in several countries. The company needs a “core”, a base in the EU, to collect all the profits it will get in the EU. Normally, logically, it will look for the best option in terms of taxation.

There will be two perspectives:

  1. Which is the most favorable EU Member State for the collection of profits and which has the most favorable legislation;
  2. What will be the best way to repatriate profits to its non-EU country.

A real and applicable case is when Chinese citizens want to enter the European market.

Let’s continue:

Marketplace will be in three EU countries – CZ, ES, HU. It is also desirable to centralize them throughout the EU.