When should I review my tax strategy to avoid double taxation?
June 8, 2022 | 120,00 EUR | answered by Guido Hoffmann
Dear tax advisor,
my name is Andreas Prestel and I work as a self-employed entrepreneur in the IT industry. In recent years, I have conducted more business transactions abroad, resulting in income generated in various countries. Now I am concerned that I may be subject to double taxation due to the different tax laws in different countries.
I developed my current tax strategy several years ago and have not reviewed it since. Therefore, I am wondering if it is time to reconsider and adjust my tax strategy to avoid double taxation. I want to ensure that I do not have to pay taxes twice and can efficiently manage my finances.
Could you please advise me on how often I should review my tax strategy to identify and avoid potential risks of double taxation early on? Are there specific signs I should look out for to determine if my current tax strategy is still appropriate?
I would greatly appreciate it if you could provide me with specific guidance and recommendations on how I can best adjust my tax strategy to avoid double taxation and optimize my tax burdens.
Thank you in advance for your support and advice.
Best regards,
Andreas Prestel
Dear Mr. Prestel,
Thank you for your inquiry regarding double taxation in the international business sector. As a tax advisor specializing in this area, I understand your concerns and would like to offer you some advice to minimize potential risks.
First and foremost, it is important to understand that avoiding double taxation is a complex issue that requires regular review of your tax strategy. Considering that you are increasingly active abroad and generating income in different countries, I recommend reviewing your tax strategy at least once a year and adjusting it if necessary.
There are certain signs to watch out for to determine whether your current tax strategy is still appropriate. These include changes in the tax laws of the countries involved, changes in your business model or the way you conduct international business, as well as changes in your income or asset structure. If you notice such changes, it is advisable to promptly review your tax strategy.
To avoid double taxation and optimize your tax burden, I recommend seeking professional assistance from a tax advisor with expertise in international tax law. Together, we can analyze your current tax situation, identify potential risks, and develop a tailored tax strategy that aligns with your individual needs and goals.
In summary, it is important to regularly review your tax strategy to avoid double taxation and optimize your tax situation. If you need specific tips and recommendations for adjusting your tax strategy, I am at your disposal.
Thank you for your trust and inquiry.
Best regards,
Guido Hoffmann
Tax Advisor
