Jurisdictional planning is increasingly the best long term sustainable solution to corporate tax planning. As economies around the world compete to grow their share in the investment management industry, the tax rates on offer are set to induce businesses to either relocate or establish new offices in their jurisdiction.
Under the OECD guidelines the basic premise is that income and profits should be taxable in jurisdictions where value is added. These international taxation principles have been chosen by OECD member countries as serving the dual objectives of securing the appropriate tax base in each jurisdiction and avoiding double taxation, thereby minimizing conflict between tax administrations and promoting international trade and investment.
Duff & Phelps can assist clients by advising suitable jurisdictions and structures through which businesses can expand gaining access to the best rates jurisdictions have on offer. Crucial to this assessment is the application of the OECD guidelines and the interaction with local legislation and where applicable exemptions. Once established we can assist with documenting the adopted transfer pricing position.