Our tax services team can provide guidance to multinational and local groups of companies in developing their tax strategies that can maximise tax planning benefits and meet all compliance requirements of local tax legislation. Drawing from experience and expert knowledge we can provide professional assistance to businesses in domestic and international tax planning. Structuring international transactions in a tax efficient manner demands a degree of specialization that requires the expertise of a tax professional advisor. Our team has this knowledge to assist Clients meet their tax planning objectives. Our goal is to deliver comprehensive and practical tax solutions that help businesses meet their local and worldwide tax and statutory responsibilities. Our tax services team should help to achieve cost efficiencies in line with each company’s risk profile.
Our tax teams handle issues ranging from straightforward compliance to complicated tax planning. In fact compliance is only the beginning. Our proactive tax service ensures that all our clients maximise the opportunities available to them.
Whether your business is owned domestically or from abroad, our corporate tax specialists bring to each assignment a professional thoroughness and a wealth of knowledge of local corporate tax law and business conditions.
Our services include:
- Advising on tax compliance requirements and preparing the necessary returns and declarations.
- Negotiating with Albanian tax authorities to secure rulings and resolve disputes
- Advising on available tax incentives and preparing the claims
- Advising on the structuring of transactions
- Carrying out due diligence into the tax affairs of acquisition targets
Businesses trading internationally inevitably come up against a complex array of foreign indirect taxes. Depending on the nature of the goods or services they supply and depending on the countries in which they trade, these can include value added tax (VAT), goods and services tax (GST), sales taxes, customs duties and excise duties.
Indirect taxes are generally a cost for the consumer to bear. The burden of administering them however usually falls on the supplier, and for the business which gets it wrong, an unforgiving battery of stiff financial penalties lies in wait.
Baker Tilly International member firms’ tax specialists guide multinational clients through the complexity of the world’s indirect tax systems. The following are some of the areas in which we can provide valuable support:
- Information about the indirect taxes in force in Albania and in more than 100 countries worldwide. Advice on business structures that mitigate the effects of indirect taxes and give a competitive advantage
- Preparation of VAT periodic returns. The filing of returns can produce VAT refunds which the business has itself incurred
- Acting as a VAT representative for businesses in Albania. Tax authorities in Albania insists that foreign businesses make such an appointment as a precondition for their being allowed to trade in the country
- Negotiations with Albanian tax authorities and the resolution of disputes
International trading groups which have staff working on assignment away from their home country will understand the benefits to be gained from supporting their employees whilst in their temporary working location and ensuring they are free to concentrate on their work.
One of the ways in which the employer can help is by relieving the employees of the problems they might otherwise encounter when they come up against the tax and social security systems of the country to which they have been assigned. Compliance obligations differ considerably country to country and careful planning can minimise the associated liabilities for both employees and employers.
With a global network of expatriate tax specialists, Baker Tilly International provides international trading groups with a full spectrum of technical and practical advice in looking after the needs of their staff working away from home, wherever they are located. Some of the ways in which we can help include:
- Analysis on how individuals will be affected by the tax systems
- Advising on any personal financial planning measures
- Preparing the tax returns of expatriates during their secondment
- Dealing with any other filings that will be needed during their stay
Transfer pricing refers to the pricing policies adopted by groups of companies for transactions between companies in the group, such as the sale of goods, the provision of services, or the licensing and use of technology and intangible assets.
With corporate tax rates varying considerably from country to country, tax authorities are aware of the potential for multinational groups to reduce their global tax charge by manipulating the prices charged on intra-group transactions. As a result, many countries, among them Albania, now have transfer pricing legislation empowering their tax authorities to impute additional taxable profits to companies if they consider they have been charged too much or have charged too little on intra-group transactions.
As such, transfer pricing has become the single most important issue in the field of international taxes. All groups trading internationally can expect to be the subject of transfer pricing enquiries in one or more countries, however reasonable they consider their intra-group prices to be. For a group company to have to pay more taxes as a result of an enquiry can be a disaster; often it is not possible for group companies in other jurisdictions to obtain corresponding tax relief resulting in double taxation.
Baker Tilly International worldwide transfer pricing specialists work together to deliver global solutions for clients that protect against the threats posed by transfer pricing legislation. There are four ways in which we can help:
- Advising on appropriate pricing for transactions with affiliates, using proven economic databases which minimise the risk of successful challenges by national tax authorities.
- Preparing Annual Notification in relation to transfer pricing.
- Advising on the documentation of a group’s transfer pricing policies. Albania has transfer pricing legislation which gives to tax authorities the power to demand to see such documentation and to impose heavy financial penalties if it does not exist or if it is perceived to be inadequate.
- Defending a group’s transfer pricing policies when they come under attack by Albanian tax authority
- Negotiating Advance Pricing Agreements (APAs) with local tax authorities. Albania offers an APA facility, under which a group’s transfer pricing policies are voluntarily disclosed to the authority and discussions ensue as to whether they are fair. In some circumstances this can be the right way to proceed.