Your company’s legal structure does not come with a lifelong warrantee. The structure you established years ago may no longer be fiscally optimal today. As a result of new tax regulations, it may now be more attractive to restructure certain aspects of your company. In other cases, your operations may have changed in such a way that a new structure would be more suitable.
So, how do you go about transforming your company’s current structure into a new one? What are the most attractive fiscal options for establishing new alliances or ending old ones?
Fisconti can help you evaluate your company’s structure and provide advice on making the necessary changes without any negative fiscal effects. Our assistance throughout this transformation process extends beyond providing solutions on paper: we will offer practical help in setting up your company’s new structure.
If intellectual property (patents, copyrights, etc.) is key to your operations, it may be prudent to carefully assess which company holds these immaterial assets and where this company is located. In addition to its legal relevance, this question is also crucial with regard to taxation: developing an IP strategy is of crucial financial importance.
We will work with you to assess the options for structuring your key intellectual properties in a solid and fiscally attractive manner.
A key part of Fisconti’s tax advice services relate to business restructurings; the process of changing the way how a compnay runs it business (e.g. changing its trading model). Such efforts may be prompted by the need to integrate or relocate business units in the wake of a merger or acquisition, or the desire to manage the company’s activities more efficiently. Such changes can have major fiscal consequences, especially if multiple companies and/or countries are involved.
Business restructurings, such as supply chain projects, may involve the transformation of manufacturing companies into contract manufacturers or toll manufacturers. Under the new situation, the manufacturing companies will produce products for another group company (the principal) rather than themselves. In many cases, such transformations involve the introduction of more standardised sales and customer invoicing processes (such as invoicing from a single location). Local sales offices are then converted into sales agents or distributors, subject to limited risks.
Two key aspects are crucial during such reorganisation processes. Firstly, it is important to determine whether the restructured manufacturing or sales company will be required to obtain an indemnification for the functions and/or risks that have been transferred within the group (in the form of goodwill settlements, for example). Secondly, it is important to determine whether the principal will be liable for foreign tax on the profits that it wil generate through the foreign subsidiary.
The working area of Fisconti Tax Consulting can also extend beyond the boundaries of pure tax consulting. We belief that the tax function should support the operation of your business. Tax should facilitate your business, meaning, for example, that our activities should help to eliminate any tax obstacles that you may be confronted with when running your business.
This will require a thorough understanding of your company and its specific dynamics. In view of the primary importance of the company itself, our focus often extends beyond the realm of taxation.
As we are well aware, non-tax related issues require a different skill set. For that reason we work in close collaboration with Voorne Partners a specialised management consulting firm. This partnership allows us to carry out assignments that involve fiscal aspects but extend beyond the realm of tax alone. As a part of our alliance with Voorne Partners, we have developed and applied unique solutions enabling companies to reorganise their European (or global) activities while reaping the intended business benefits. an example hereof is the creation of Single Business Entities. Our consultancy services are aimed at ensuring a smooth organisational transition without excessive tax costs or unexpected fiscal risks.
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