What to Expect from Figeroux & Associates in International Tax Law

Introduction
As businesses expand globally, they face intricate tax challenges due to varying tax regulations across jurisdictions. International tax law encompasses the rules, treaties, and agreements that govern tax liabilities for companies with cross-border operations. The firm Figeroux & Associates specializes in providing comprehensive guidance in international tax law, helping businesses minimize tax liabilities, achieve regulatory compliance, and structure their operations to maximize tax efficiency. For businesses operating internationally or planning to expand into foreign markets, the firm’s expertise in international tax law ensures compliance while supporting the client’s strategic goals.

This article offers an in-depth analysis of Figeroux & Associates’ services in three critical areas of international tax law: tax minimization strategies, compliance with complex cross-border tax regulations, and structuring business operations and transactions to optimize tax outcomes.

1. Minimizing Tax Liabilities

Minimizing tax liabilities is a fundamental goal in international tax planning. Through strategic planning, Figeroux & Associates assists clients in taking advantage of tax treaties, credits, deductions, and incentives to reduce their global tax burden. By leveraging these opportunities, the firm helps businesses retain more revenue for reinvestment, expansion, and other business activities.

What Clients Can Expect:

• Comprehensive Tax Liability Assessment: Figeroux & Associates begins with a thorough assessment of the client’s global tax position, reviewing income sources, expenses, current tax obligations, and areas where tax savings may be possible. This assessment forms the basis for developing a tailored tax minimization strategy.
• Leveraging Tax Treaties for Reduced Rates and Credits: Many countries have bilateral tax treaties that reduce withholding tax rates on dividends, interest, royalties, and other income flows. Figeroux & Associates analyzes applicable tax treaties and advises clients on how to structure payments and transactions to take advantage of these treaty benefits.
• Foreign Tax Credits and Deductions: When businesses operate in multiple jurisdictions, they often face double taxation on the same income. The firm helps clients claim foreign tax credits or deductions, reducing U.S. tax liabilities for taxes paid to foreign governments. This approach minimizes the risk of double taxation, enhancing the client’s tax efficiency across borders.
• Optimizing Transfer Pricing Arrangements: Transfer pricing involves setting prices for goods, services, and intellectual property transferred between related entities in different countries. Figeroux & Associates provides guidance on transfer pricing policies that comply with regulations while optimizing tax outcomes, helping clients retain profits in lower-tax jurisdictions.
• Structuring Cross-Border Investments for Tax Efficiency: When making investments in foreign markets, structuring them strategically can minimize taxes. The firm assists clients in choosing tax-advantageous structures, such as foreign holding companies or pass-through entities, that enable them to manage foreign income and distributions in a tax-efficient way.
• Managing Deferred Tax and Repatriation Strategies: Businesses with foreign subsidiaries often benefit from deferring taxes on foreign income or planning for repatriation in a way that minimizes tax impact. Figeroux & Associates advises clients on deferred tax strategies, such as the timing of income recognition and use of dividend distribution exemptions, to reduce the tax burden when bringing income back to the U.S.

Proactive Tax Planning for Ongoing Savings

Figeroux & Associates’ approach is proactive, focusing on future savings by periodically reviewing the client’s tax position to adapt to changes in regulations and business activities. This ensures that clients can take advantage of new tax-saving opportunities as they arise and that existing strategies remain effective.

2. Ensuring Compliance with Complex Tax Issues Based on Jurisdiction

Compliance with international tax laws is crucial for businesses operating across borders to avoid costly penalties, audits, and reputational risks. With varying tax regulations in each country, staying compliant with local and international tax laws requires deep knowledge and careful planning. Figeroux & Associates provides comprehensive compliance services, helping clients navigate complex tax issues based on jurisdictional requirements.

Domestic Compliance for U.S. Multinational Corporations

U.S. tax law requires businesses to adhere to strict reporting requirements for their foreign operations. Figeroux & Associates assists clients in understanding and fulfilling these obligations, ensuring compliance with IRS regulations.

What Clients Can Expect:

• Controlled Foreign Corporation (CFC) Compliance: U.S. tax law includes stringent rules for Controlled Foreign Corporations (CFCs), which are foreign subsidiaries owned by U.S. shareholders. The firm advises clients on CFC reporting requirements and assists in calculating Subpart F income, which is subject to U.S. tax even if not repatriated.
• Global Intangible Low-Taxed Income (GILTI) Compliance: GILTI is a tax on foreign earnings of U.S. corporations. Figeroux & Associates helps clients calculate their GILTI tax liability and explores options to minimize this impact, such as high-tax exceptions or effective use of foreign tax credits.
• Foreign-Derived Intangible Income (FDII) Planning: FDII offers tax benefits for U.S. corporations that generate income from exports of goods, services, or IP. The firm advises clients on structuring operations to maximize FDII benefits, potentially reducing the U.S. tax rate on qualifying income.
• FATCA and FBAR Compliance: For businesses with foreign bank accounts, the Foreign Account Tax Compliance Act (FATCA) and Foreign Bank Account Reporting (FBAR) requirements are essential. Figeroux & Associates helps clients comply with these reporting obligations, avoiding the substantial penalties associated with non-compliance.

International Tax Compliance in Foreign Jurisdictions

In addition to U.S. compliance, businesses must also adhere to the tax laws of each foreign jurisdiction where they operate. Figeroux & Associates guides clients through these complexities, ensuring compliance with local tax regulations.

What Clients Can Expect:

• Country-by-Country Reporting and Documentation: Many jurisdictions require country-by-country reporting for multinational companies to provide transparency on profits, taxes, and business activities in each country. Figeroux & Associates helps clients prepare and submit these reports in compliance with the Base Erosion and Profit Shifting (BEPS) guidelines.
• Transfer Pricing Documentation and Compliance: Transfer pricing rules vary by country, and failure to comply can lead to significant penalties. The firm assists clients in preparing transfer pricing documentation that meets local requirements, ensuring that pricing policies align with arm’s-length standards and reducing the risk of tax adjustments.
• Value-Added Tax (VAT) Compliance: For companies selling goods or services abroad, VAT compliance can be complex, with varying rates, exemptions, and reporting requirements in different jurisdictions. Figeroux & Associates provides VAT compliance support, helping clients manage registration, reporting, and payment obligations for international transactions.
• Permanent Establishment (PE) Risk Assessment: Many countries tax foreign companies that establish a Permanent Establishment (PE) within their borders. The firm evaluates clients’ activities to assess PE risk, advising on strategies to mitigate exposure and avoid triggering tax obligations in foreign jurisdictions.
• Tax Treaty Analysis and Application: Tax treaties between countries can reduce withholding tax rates on cross-border payments and prevent double taxation. Figeroux & Associates advises clients on applying relevant tax treaties to optimize withholding rates and benefit from treaty exemptions or credits.

Audit Representation and Dispute Resolution Across Jurisdictions

In cases of audits or disputes with tax authorities, Figeroux & Associates provides representation and advocacy, coordinating with local counsel if necessary. The firm’s experience in international dispute resolution helps clients protect their interests and achieve favorable outcomes in compliance-related matters.

3. Structuring Business Operations, Transactions, and Mergers in a Tax-Efficient Manner

Structuring business operations, transactions, and mergers with tax efficiency in mind is essential for maximizing returns and minimizing tax liabilities in international contexts. Whether a company is setting up a new overseas entity, expanding through mergers and acquisitions, or restructuring existing operations, Figeroux & Associates provides guidance to achieve tax-efficient outcomes.

Structuring International Business Operations

Choosing the right structure for global operations can significantly impact a company’s tax liabilities and operational flexibility. Figeroux & Associates advises on structuring operations in a way that reduces taxes while meeting regulatory requirements.

What Clients Can Expect:

• Entity Selection and Jurisdiction Analysis: The choice of entity type and location influences the tax treatment of a business’s international operations. Figeroux & Associates assists clients in selecting the most advantageous entity types (such as subsidiaries, branches, or holding companies) and jurisdictions for their specific needs, considering factors like local tax rates, withholding taxes, and regulatory requirements.
• Efficient Use of Holding Companies and IP Holding Structures: For clients with significant intellectual property assets, using a holding company structure in a low-tax jurisdiction can provide tax savings on royalties and licensing fees. The firm advises on creating IP holding structures that protect intellectual property and minimize global tax burdens.
• Strategic Use of Hybrid Entities and Financing Arrangements: Hybrid entities and financial arrangements can reduce tax liabilities by taking advantage of differences in tax treatment across jurisdictions. Figeroux & Associates helps clients structure these arrangements to maximize tax efficiency while remaining compliant with anti-avoidance rules.
• Tax-Advantaged Supply Chain Management: The structure of a company’s supply chain can have a significant impact on tax efficiency. The firm advises on supply chain management strategies that optimize the tax treatment of income, including transfer pricing policies, location of distribution centers, and efficient inventory management.

Structuring Cross-Border Transactions and Mergers

Cross-border transactions, including mergers and acquisitions, involve complex tax considerations that can impact the financial success of the transaction. Figeroux & Associates provides guidance on structuring transactions to achieve favorable tax outcomes for both the buyer and the seller.

What Clients Can Expect:

• Tax Due Diligence in International M&A: Before a merger or acquisition, Figeroux & Associates conducts tax due diligence to identify potential tax liabilities, evaluate the target’s tax attributes, and assess the impact on the client’s overall tax position. This due diligence helps clients make informed decisions and avoid unexpected tax costs.
• Structuring Asset and Stock Purchases for Tax Efficiency: The tax implications of purchasing assets versus stock can vary significantly, especially in international transactions. The firm advises on the optimal structure for the acquisition, taking into account depreciation benefits, basis adjustments, and tax treaties.
• Cross-Border Reorganizations and Spin-Offs: When restructuring or spinning off international operations, Figeroux & Associates provides guidance on minimizing tax impact and complying with both U.S. and foreign tax laws. This may involve leveraging tax-free reorganization provisions or deferring taxes on capital gains.
• Efficient Capital Structure and Financing for International Expansion: Financing structures, such as intercompany loans, equity injections, or hybrid instruments, can impact a company’s tax position in multiple jurisdictions. The firm advises on structuring financing arrangements that minimize withholding taxes, allow interest deductions, and optimize tax outcomes.
• Section 367 Compliance for Cross-Border Transfers: For U.S. companies transferring property or assets to foreign entities, Section 367 of the IRS Code imposes certain tax obligations. Figeroux & Associates advises clients on compliance with Section 367 rules, ensuring that cross-border transfers are structured to minimize tax impact.

Post-Merger Integration and Tax Optimization

After a merger or acquisition, Figeroux & Associates assists with post-merger integration to align operations and achieve tax efficiency. This may involve restructuring entities, consolidating financial systems, or implementing efficient transfer pricing practices to optimize the tax position of the combined organization.

Conclusion

Figeroux & Associates offers a comprehensive range of services in international tax law, supporting businesses with tax minimization strategies, compliance across multiple jurisdictions, and tax-efficient structuring of operations, transactions, and mergers. With expertise in both U.S. and international tax law, the firm serves as a trusted advisor for businesses seeking to navigate the complexities of global tax planning and compliance.

For companies looking to reduce tax liabilities, the firm provides customized strategies to leverage deductions, credits, and treaty benefits, ensuring that clients retain more of their global income. In the area of compliance, Figeroux & Associates helps clients understand and meet the tax requirements of each jurisdiction in which they operate, mitigating risks and avoiding penalties. For those engaged in international transactions, mergers, or operational expansions, the firm offers guidance to structure these activities in a way that maximizes tax efficiency and aligns with business objectives.

By partnering with Figeroux & Associates, businesses can confidently manage the tax implications of their global operations, benefiting from proactive planning, expert compliance support, and strategic structuring that promotes growth and profitability in the international marketplace. With a client-centered approach and a deep understanding of international tax law, Figeroux & Associates equips businesses with the tools they need to achieve sustainable success in today’s global economy.