Every corporate entity has to complete several accounting tasks. Starting from company formation, several accounting processes are to be streamlined within an organisation. Without company registration, a corporate entity cannot operate within a jurisdiction. If the corporate entity is global, it must deal with expatriate and international taxes. Many organisations send their employees to a foreign land at frequent intervals. In such a case, companies have to look after the expatriate taxes on behalf of their employees. Business owners should be aware of various accounting services like company formation and expatriate tax services. Read on to know more about expatriate tax and company formation services in accounting.
Understanding the concept of expatriate tax
People often renounce their citizenship but intend to return to their native nation. In such a case, the person leaving their native country for employment or any other reason will be called an expat. However, not all nations apply an expatriate tax on people renouncing their citizenship. For example, Canada applies a departure tax on people leaving their country. When an expat leaves their native land, they have to pay taxes on their property. Property, assets, debts, and other investments will be analysed before the expat leaves their native country. Then, based on the taxable income in the native land, expatriate tax is applied. Expatriate tax involves a lot of paperwork and assessment.
Often, corporate organisations transfer their employees to a foreign location. Global companies have to ensure employees in different nations complete their daily operations. The employer also has to assist the employee with expatriate tax before transferring them to a foreign location. Companies have to complete the expatriate paperwork on behalf of their employee. Expatriate tax is always a headache for companies. The expatriate tax will always be considered whether a foreigner is coming to India or an Indian going to a foreign land. It is why companies look for expatriate tax consultants to help them out with the complex documentation process.
What are services offered by expatriate tax experts?
As discussed above, companies need service providers for expatriate tax processes. In addition, service providers can help with several expatriate tax processes, such as:
- A service provider can offer consultation services on the secondment of an expatriate. From permanent establishment to foreign exchange issues, everything is solved by an expatriate tax expert.
- A professional service provider can assist the employer in getting the expatriate documentation right. In addition, companies dealing with expatriate taxes often need a service provider for bank account opening purposes.
- Usually, expats have to get themselves registered within 14 days of arriving in a new country. The dependants of an expat also have to themselves registered in the new country. Companies having foreign employees need expatriate services to get the employees registered in the new country.
- Expatriate service can help in the proper disclosure of foreign assets and liabilities. A service provider will help file the income tax return before exiting the native country. Many firms also offer relocation services with the help of real-estate companies to expats.
- Before the exit of an expat from their native country, several formalities are to be completed. A professional service provider can help companies meet the exit formalities and ensure a smooth transfer.
Hiring in-house expatriate tax experts aren’t beneficial for a company. Why spend funds on the training and hiring of in-house expatriate tax experts? A company can choose to outsource expatriate tax processes to a professional service provider. By doing so, a company can save on overhead costs and reduce the burden of expatriate taxation. A professional service firm (CA firm) has access to tax experts that know everything about expatriate tax.
Company formation/registration services
Company formation services also fall under the bracket of accounting services. Every country has a set of rules for incorporating a corporate entity. Before beginning operations, a new company is registered in a particular state/country. A company that begins operations without lawful registration can land in legal hassles.
Be it a public company, private company, or any other company type; it has to be registered first. Sometimes, in-house accountants may not help a company with registration services. For doing so, one can rely on a professional service provider with skilled accountants. So choose company formation & expatriate tax services now!