Discover the top three international tax planning strategies for 2025 to optimize savings, ensure compliance, and maximize efficiency.
In 2025, corporate international tax planning will be a major issue for firms in multiple countries. Financial professionals must be aware of pitfalls such as international double taxation and create a strategic plan to stay compliant with tax laws.
International tax planning needs a good strategy to structure your business and finances. With skilled tax professionals, you can review the laws and regulations to balance the obligations across multiple countries.
In today’s blog, we will offer you the top international tax planning strategies that will help you structure your company’s internal methodologies in 2025 and beyond to ease compliance with these tax laws.
Table of Contents:
1. Prepare the Company for International Regulatory Changes
2. Gain Knowledge About the New BEPS Rules
3. Prepare for the Global Minimum Tax of 15%
1. Prepare the Company for International Regulatory Changes
The ongoing international tax and regulations are regularly changing; therefore, you need to comply across various international tax jurisdictions. Firstly, understanding the OECD’s BEPS policies that target digital economy taxation, address tax avoidance through tax havens, and introduce a global minimum tax. The requirement is updated reporting in the European Union and the US on cross-border arrangements. Many countries are still developing tax agreements with other countries to address the issues of double taxation, which discourages international trade.
2. Gain Knowledge About the New BEPS Rules
The new Base Erosion and Profit Shifting (BEPS) rules by the OECD include 15 steps to help international businesses stay ahead of the tax cycle. The actions focus on equipping governments with domestic and international rules and mechanisms to address tax avoidance. This ensures that profits are taxed where economic activities generating the profits are carried out and where value is created. Therefore, it is essential to analyze your company’s risks around reporting regulations to stay prepared and transparent to the higher authorities.
3. Prepare for the Global Minimum Tax of 15%
The new BEPS initiative consists of two pillars: one covers large companies paying taxes, and the other pillar includes three rules, which will apply to companies with $784 million or more in revenues. The “income inclusion rule” determines when foreign income is taxed by the parent company. Furthermore, the “under-taxed payments rule” allows companies to manage cross-border payment taxation. Even the “subject to tax rule,” with a 9% tax rate, targets low-tax payments within tax treaties.
In 2025, many companies are adopting specialized software solutions for Country-by-Country (CbC) reporting and analytics to ensure compliance across jurisdictions. These BEPS and global minimum tax rules can be complex, but they streamline management and report each process to combat the changing international tax regulations.
In the end, expanding your business across international borders can open up new markets and influential growth opportunities, but it also comes with its share of tax complexities. Therefore, it is essential to carefully navigate and engage in strategic planning to address the complications of transfer pricing and effectively manage the international tax landscape.
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