Global Tax Management
The globalization of companies has increased over the years to the point where companies are focusing on restructuring their existing businesses to keep up with the change in the business environment. Businesses must keep pace with globalization so as to remain competitive and survive. In order to do this, companies need to address their business needs and objectives in a tax-efficient manner. However, the accelerating pace of tax, legislative and regulatory developments throughout the world is having a profound impact on multinational businesses' ability to maintain their competitive edge.
As a result of globalization, Japan continues to experience a substantial inflow of foreign investments, and this is particularly evident with most of the listed companies in Japan. However, companies are increasing by challenged by the complexities of different tax jurisdictions as they expand on a global basis. The complexities and far reaching aspects of the Japanese tax system coupled with the relatively high effective tax rate have forced multinational companies to look for opportunities to efficiently manage their Japanese businesses while still ensuring that their structure’s global tax rate remains competitive.
With such a dynamic business environment, it is critical that foreign and Japanese companies recognized the importance of proper tax planning as a key management strategy beyond the range of mere tax saving measures. PricewaterhouseCoopers (PwC) is experienced in addressing these developments as well as all aspects of international taxation. We help multinational businesses achieve their business goals in a tax efficient manner, both locally and globally.
Understanding the tax impact on business operations and transactions in multiple jurisdictions is vital to a company's survival. Our tax professionals can assist companies:
- Formulate effective and tax-efficient cross-border strategies for both Japanese and overseas investments;
- Manage the global structural tax rate; and
- Stay abreast of new developments within the international arena that affect their business, both globally and locally.
In particular, we can provide the following services:
Outbound tax planning
Our outbound tax planning services team consists of experienced professionals who focus on Japanese investments into foreign markets. By drawing on this expertise and taking into account the client's specific business goals and objectives, we are able to customize and implement business-driven structures to meet the changing needs of Japanese multinational companies. Our outbound tax planning services group's cross-border tax planning strategies focus on relevant business and tax issues, including foreign tax credit management, group financing and cash management planning, and transfer pricing.
Inbound tax planning
The interaction between Japanese and foreign tax regimes may provide opportunities for foreign-based multinational companies to reduce taxes on a worldwide basis. Our inbound tax planning services group is a team of experienced professionals who focus on cross-border tax planning to help foreign-based multinational companies efficiently manage their Japanese operations and structural tax rate. A variety of strategies have been identified, developed, implemented by our inbound tax planning services group to meet the business needs of the foreign multinational, while maintaining a competitive structural tax rate. Our group's tax planning strategies focus on relevant business and tax issues including Japanese corporate tax advice regarding mergers and acquisitions, tax structuring, tax treaty issues, and other issues that arise when investing, reorganizing, and terminating business operations in Japan.