Don’t get taxed when going global
At today’s Business Show at London Excel, David Gibbs, member of Alliot Group kicked things off in the Tax, Finance and Foreign Investment theatre with an introduction to taxes overseas. You will be taxed differently depending on whether you are selling goods or services. It will also vary depending on what country you are operating in. Withholding tax
Employing people overseas Consider whether they are agents or employees, salaries, wages and other remuneration in respect of an employment are only taxable in the state employed. It would also be your obligation to pay social security. You need to know where their primary place of work is if they work across several countries.
You may not set out to create a branch, but the definition is a fixed place of business through which the business of an enterprise is wholly or partly carried on. If you create a business hub, you have an obligation to declare your business in that country and may be obligated to pay taxes. Are you operating your business in that country to the extent that you need to pay?
Branches often include a place of management, an office, a factory, a workshop, a building or construction site, or a mine or other natural resources. Be sure to check whether your activities should be classified as a branch. Again, it must be remembered that there are likely to be different rules in different countries and it is always important to do your homework.
Sometimes an employee on six-month probation won’t be counted if they are on probation as there is an argument that it is a temporary measure. Subsidiary or new branch