Taxation of international projects and structures

SBAL recommends all its clients to properly approach taxation of their international transactions, in order to prevent unexpected contingencies or costs, and also to optimize the tax impact of their international projects.

We have a network of highly qualified collaborators, and all the specificities of each discipline and of each host country are addressed in collaboration with them in a coordinated, agile and responsive way.

The tax advice that we render in relation to international transactions includes the following, among others:

• Diagnosis of the tax liabilities that the project might result in, specially at the host country, due to the imposition of direct taxes (i.e. as a result of the existence of either a permanent establishment or withholding at source) or due to the levy of indirect taxes, customs duties or excise taxes or because of the taxation of seconded employees pursuant to the Double Tax Agreements in force, the local regulations and practices.
• Design and formation at the host country of the most suitable corporate structure, that is to say, an affiliated company, a permanent establishment or a branch office.
• Planning of the design of the "Off shore" / "On shore" project scope, in the light of the transaction economic backdrop, INCOTERMS, delivery terms and conditions and, of course, by taking tax implications into account.
• Project analysis and diagnosis of whether any withholding at source might exist, the percentage and the likely formalities to be carried out for its limitation on the grounds of the existence of an International Agreement.
• Analysis of the length of the stay at the host country required by the Project, as well as any other circumstance whatsoever that might determine the existence of a permanent establishment in the host country.
• Analysis of the advantages and drawbacks of the different types of associations / partnerships in international projects together with their potential implications.