International Taxation and Transfer Pricing

With several entities investing in India and also domestic entities expanding and looking for business opportunities outside India, the number of cross border transactions has increased manifold. Thus, there is a need to implement strategies to address various tax opportunities to achieve growth. These transactions need to be analyzed keeping in mind the tax laws of both the countries. Entities need to plan their business activities in such a manner that these transactions are well within the given regulatory framework, compliances are made within the prescribed timelines while ensuring that the entity does not loose sight of it’s core deliverables.

Understanding this need of the entities, UJA offers a complete spectrum of international tax services which include:

Analysis of Double Taxation Avoidance Agreement

A double taxation avoidance agreement (DTAA) is signed between two or more countries with the objective that tax – payers in these countries can avoid being taxed twice for the same income.

Keeping in mind the transactions undertaken by the entity, we help understand the tax implications of such transactions in the light of the tax treaty to ensure the elimination of double taxation, advice on the withholding tax rates as per the Income Tax Act vis-à-vis tax treaties.

International and Cross Border Taxation

Our international tax professionals help entities address various concerns pertaining to cross border transactions. 

Expatriate Taxation

Very often entities are faced with issues pertaining to expatriate taxation. These include determination of residential status of expatriate employee, exposure of Permanent Establishment (PE) risk in India for overseas employers with regard to their inbound expatriates etc.

UJA provides comprehensive solutions to various issues faced by entities pertaining to expartriate taxation.

Transfer Pricing

Transfer pricing (TP) has grown into one of the most contentious issues worldwide. Entities not only need to plan their international transactions within the existing framework but also in anticipation of the future uncertain tax policies which may create an impact on these business.
 UJA offers optimized solutions – planning, compliance, advisory services: 

Country By Country Reporting (CbCR)

Country By Country Reporting (CbCR) is a part of OECD’s base Erosion and Profit Shifting (BEPS) Action Plan 13. Large Multinationals have to prepare and the share a CbC reportable template with tax authorities in the country where they have a taxable presence.

The tax administration of a country shall use the country – by – country report for purpose of assessing high level transfer pricing risks and other base erosion and profit sharing risks.

Three – tier structure of TP documentation

  1. Country – by – Country Report (CbC Report): The CbC report contains information regards the functions performed, assets owned, profits earned, revenue generated, personnel employed, taxes paid, capital structure, retained earnings etc. with respect to each entity of the group which are located in different jurisdictions.

  2. Master File: A master file report provides an overview of the groups global business operations, it’s policies on how intra – company transactions are accounted. It is generally prepared by the ultimate parent company.

  3. Local File: A local file comprises of functional and economic analysis of international transactions undertaken by the local entity.

    We at UJA offer the following services :