The Fundamentals of International Taxation
Basically, taxation status of a person can often decide the amount of tax they will pay. This could even assist you to gain capital or income taxation breaks. However, with an improper taxation status, you can deal with possible double taxation problems. Truth be told, these matters could also raise issues about the residence status of a person.
This is why it is extremely important that you understand the international taxation laws and rules of a new country you are planning to settle in and your home country as well. Also, you need to focus more towards the international tax planning. It would be helpful if you research details regarding Form 5471 for further details about international taxation.
There are a lot of professional groups that offer tax services and they fall to four different categories:
First, there's the local accountants. You will need to hire a local accountant in your home country to help you understand the different perspective of international tax. You will also need to appoint an accountant in your new country because it is unlikely that your previous local accountant will have in-depth knowledge about the rules, laws and tax breaks of the other country. Thus, it is much better to hire two professionals to make sure that you cover all your possible liabilities in both countries.
Second, there's the professional international tax planners. They will be able to help you create a proper taxation status by using their knowledge of financial planning and international accountancy. They will help you understand the pros and cons of your current taxation status. And also, they will be able to help you cover all your taxation accountability and to get the offshore benefits that you are titled to. Moreover, they will even formulate an exclusive legal plan for you in order to lessen your entire taxation liability.
Third, there's the international accountants. They will be able to help you with your international taxation planning. They have a good understanding on the international tax related breaks and rules. But then, getting an international accountant will be useless in case you are main concern is about offshore banking advantage and also investment. They can only advice on the residency related laws and rules.
Lastly, there's the international financial advisers. They will help you understand the offshore world. They will be able to advice you on how to place your financial assets in the new country where you will reside. Furthermore, they will assist you to negate or limit your entire taxation liability.
