International Tax

Navigating the Complexities of Global Taxation

It’s been said that every transaction has a tax implication. Today, many companies trade in the global marketplace where everyday operations carry international tax consequences and opportunities. Most taxing authorities take territoriality into consideration, and in many cases there are offsets based on taxes paid in other countries. Herbein works to ensure that clients avoid double taxation, capitalize on tax credits, and remain compliant in all countries of operation.

Our international tax scope is greatly enhanced through our association with Allinial Global. In many cases we have been able to work with Allinial Global member firms on issues that required country-specific knowledge that demanded the attention of a local professional who deals with similar issues every day.

A hot topic within the accounting world today is transfer pricing, or the practice of setting the amount of charges to related parties during international transactions. This affects related companies who exchange products or services. Taxing authorities tend to enforce the arms’ length principle – that is, what is the pricing that two unrelated businesses would implement in a similar transaction. A transfer pricing study provides the documentation necessary to make a case for the meeting the arm’s length principle criteria.