Other Methods of Outbound Tax Planning
From a domestic corporation’s perspective, the objective of outbound tax planning is to reduce the U.S. and foreign taxes on foreign source income. Many of the techniques that a U.S. taxpayer can use to reduce foreign income taxes are essentially the same as those used to reduce income taxes in a purely domestic context. Examples include realizing income in a form that is taxed at a lower rate (such as capital gains rates), deferring the recognition of gross income, and accelerating the recognition of deductions. Other foreign tax reduction techniques are unique to the international context, and include taking advantage of local tax incentives, debt financing, and the use of tax treaties.
We utilize the following tools to plan to reduce global tax liabilities on behalf of our clients: