Page 24 - Strategic Tax Planning for Global Commerce & Investment

Cross Border Tax Planning Strategies

pricing can have a substantial impact on lowering the
enterprise's effective tax rate (ETR).

2. Jurisdictional Strategies

Jurisdictional strategies focus on the use of domestic or in-
country tax laws. Depending on the country, planning
opportunities may include the use of local country
consolidations, research and development tax credits or
similar incentives, the use of tax loss carry-backs or carry-
forwards and loss refreshing transactions, tax free asset step-
ups and re-evaluations (e.g. intangibles), income and capital
planning or the use of tax holidays or special tax zones to
reduce direct and indirect taxes.

Developing a Tax Planning Strategy

Developing and implementing a comprehensive and integrated
global tax plan is a complex problem which requires an
integrated approach and an understanding of many
interdependencies. It involves the following steps:

 Studying the global profit and tax drivers
 Setting goals
 Identifying strategies and categorizing
planning techniques

 Weighing and choosing alternatives
 Implementing a plan
 Periodically reviewing the plan's perfor-

mance

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