5 Things to Consider When Hiring an International Tax Consultant

international tax consulting

In today’s globalised world, economies are more connected than ever. Companies should be familiar with the rules and regulations in different nations if they are operating overseas. One of the biggest challenges for international companies is taxation. Tax rules are complicated and differ for each jurisdiction. A business cannot apply the same tax strategy in every country. Following the tax regimes in different countries is an obligation for global companies. Since companies face issues with international tax management, they hire the right experts. However, hiring international tax experts has its challenges. Read on to know the things to consider before looking for international tax consulting services.

  • Requirement of an entire team

International tax management is not a one-person show. It might not be possible for a single person to be familiar with tax regimes in different countries. Let’s consider a business that operates in the USA, UK, and India. A single person might not be familiar with the tax regimes in all these countries. Global companies require an entire team of tax experts that can help with tax processes in different countries. A company does not want to rely on a single person who might not show up when required. Taxes are complicated, and the complication increases when it comes to global tax management. A single tax mistake in any country might hamper the reputation of a multinational firm. Global companies should make up their mind about needing an entire team of tax experts. Each tax expert within the team will have their competencies and help the global firm to get its finances right.

  • Recruitment vs outsourcing

How will an international firm hire tax experts in different jurisdictions? A global firm might require a recruitment team in different countries. Finding the best talent in various jurisdictions might not be easy. Not to forget, the firm has to incur recruitment costs in different jurisdictions. Who knows how much will the global firm spend to train the selected candidates before onboarding? If the recruitment process is lengthy, will a global firm perform without international tax experts? All these questions raise doubt in the minds of ex-pats and global business owners.

A global firm is not forced to recruit tax experts in different jurisdictions. Besides focusing on recruitment, an international firm can outsource tax processes in different nations to a third party. For example, a CA firm has experienced tax experts ready to serve a multinational firm. By doing so, a global firm will save costs on recruitment and training tax professionals. Also, tax experts will be available from day one. So why not decrease the in-house burden by outsourcing international tax processes?

  • Required international tax services

Remember, you are looking for international tax consulting services. A global firm might not be looking for an accountant to only file taxes in different jurisdictions. Before looking for tax consultants, a company must get its requirements straight. If the task was only to file annual tax returns, an entry-level accountant might do it. International tax consultants help clients with tax planning, management, and more. A consultant will help a global firm to decrease its tax burden in different jurisdictions. Before looking for an international tax consultant, a business has to list its expectations. Even if a global firm is outsourcing the tax department, it must discuss the requirements with the related third party.

  • Costing

Everything comes at a cost, and so do international tax consultants. If a firm is about to hire international tax consultants, it also needs to consider their salaries. Besides salary, the firm also has to estimate the costs related to recruitment and training. If the company decides to outsource the tax department, it needs to compare the cost of different third parties. Ensure that you don’t spend more on taxes than you save.

  • Proactive tax consultancy services

Tax regimes are dynamic and might change at frequent intervals. A global company cannot risk a slow tax team that is too late to respond. A tax team should bring changes in the department as the regimes change. Sometimes, the entire tax strategy must be adjusted according to the new tax regime. Focus on hiring proactive tax consultants that can keep track of changes in the tax regime. Focus on international tax planning for better results!

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