Navigating International Company Taxation in a Globalized Economy

In today’s increasingly interconnected global economy, businesses operating across borders face a labyrinth of tax rules, compliance challenges, and shifting international frameworks. Understanding these complexities — and planning accordingly — has become essential for business success and sustainability.

At Prasad & Company LLP, we help multinational companies and Canadian businesses with international operations manage global tax risk, reduce inefficiencies, and plan strategically.

Understanding International Taxation: The Basics

International taxation refers to how income is taxed when a business operates in multiple jurisdictions. Common considerations include:

• Multiple tax rates across countries (e.g., Ireland at 12.5% vs. the U.S. at 21% federally + state taxes).
• Double taxation risks, where the same income is taxed twice.
• Tax treaties, such as the Canada–U.S. Tax Treaty, to avoid double taxation.
• VAT/GST obligations when selling goods/services internationally.

How we help: We assess your global footprint and restructure your operations to avoid inefficiencies and minimize tax exposure.

Recent Global Trends: What You Need to Know

The tax landscape is shifting rapidly, especially for companies with revenues over €750M. Major developments include:

• OECD Global Minimum Tax (GMT): Introduces a minimum 15% effective tax rate for large multinationals to reduce profit shifting.
• Qualified Domestic Minimum Top-Up Taxes (QDMTTs): Implemented by countries like Hungary and Ireland to align with GMT.
• Standardized Reporting: Tools like the OECD’s GloBE Information Return require new documentation and compliance processes.

Our role: We ensure you're compliant with emerging regulations while identifying opportunities to restructure profitably under the new regime.

Impact on Multinationals

With fewer opportunities for tax arbitrage, large enterprises are pivoting strategies:

• Profit Shifting is Less Effective: Reduced gaps in tax rates make artificial structuring less attractive.
• Higher Corporate Tax Revenues: Governments are now better positioned to tax earnings where economic activity actually occurs.
• Strategic Efficiency over Tax Avoidance: Location decisions are now influenced more by logistics, labour force, and infrastructure.

How we support you: Our international tax team aligns your operations and tax structure with new rules — improving resilience and preserving margin.

Practical Strategies for Managing International Tax

A strong international tax strategy includes:

• Business structure evaluation: Whether to operate via subsidiaries, branches, or hybrid models.
• Transfer pricing: Ensuring your intercompany transactions are compliant and tax-efficient.
• Tax treaty planning: Leveraging benefits under existing agreements.
• Technology adoption: Use of tax engines and real-time filing platforms to meet compliance demands.
• Ongoing advisory: Partnering with a trusted team that continuously monitors global tax reform.

What we deliver: We become your outsourced international tax advisory team—handling documentation, filings, and optimization planning.

From Burden to Opportunity

International company taxation is no longer just a compliance exercise—it’s a strategic opportunity. With the right advisors and proactive planning, your business can reduce tax leakage, minimize risk, and seize competitive advantages in every jurisdiction you operate.

Let’s Talk. If your business operates globally or plans to expand abroad, reach out to Prasad & Company LLP. Our team of tax professionals and cross-border specialists is here to help you build a customized international tax strategy that delivers long-term value.

Disclaimer: The content above is for general information only and does not constitute tax or legal advice. Each situation is unique and should be reviewed individually.*