What is the effect of a double taxation agreement (DTA) between your country of residence and the country in which your foreign company is based?
In one of our previous articles, we presented our "MORE-STUFF PLAN" for a possible relocation of the center of life abroad. The attentive online marketer, consultant and founder was provided with a comprehensive checklist.
These serve as a tool for clarifying complex questions in the context of international tax law. Furthermore, questions for clarification were identified that are at the heart of life.
If there is a double taxation agreement (DTA) in your country of residence, you can hold certain positions without triggering a permanent establishment with the consequences under tax law.
You can avoid add-back taxation, a nightmare under tax law, if you work as a commercial agent for the company.
We clarify this in our consulting practice: A foreign company that is classified under the CFC rules leads to add-back taxation in the country of residence of the shareholder of this company.
As already explained, the profits of the foreign company are subject to income tax in the shareholder's country of residence for shareholders who are natural persons.
With regard to a double taxation agreement (DTA) from Germany, we clarify which activities are involved:
If an EU foreign company is established, we will advise every entrepreneur on the structuring advice to the requirement to "build up substance" without being asked.
We make it clear that many competitors completely neglect the issue of "building up substance" in the context of international tax law.
With a view to the moderate expense of use of our business addresses on 5 continentswe address entrepreneurs on their way to global entrepreneurship. We create clarity through positioning.
P.S. It follows: What is a strategy if there is no double taxation agreement (DTA) between the country of residence and the country of domicile of your foreign company?
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