Due to the free movement of persons, capital, goods and services within the EU and further globalization, more and more companies are expanding their activities across national borders. Working across borders has consequences in various domains (social, fiscal, VAT-technical, employment law, pension accrual, etc.).
Since there is a lot going on internationally, our advisers analyze your situation on the basis of, among other things, international treaties, mutual agreements, recent case law, local legislation and the newly introduced MLI (multilateral instrument).
Points of attention
- Permanent establishment - Corporation tax: as soon as a company develops activities abroad, the question arises whether or not it has a permanent establishment there. Selling goods in other countries or carrying on building and construction activities abroad can give rise to a permanent establishment for corporate tax purposes. As a result, certain compliance obligations must be met, resulting in possible taxability of the income.
- Permanent establishment - VAT: with regard to VAT, there can also be a permanent establishment if you carry out cross-border transactions. The rules in the field of VAT are not the same as those in the field of corporate tax. You can actually have a permanent establishment in terms of corporate tax, but you cannot have a permanent establishment according to the VAT rules.
- International employment: sending employees or administrators across national borders has certain implications. Tax, social, administrative and labor law obligations in these countries must be taken into account.
HOW OUR ADVISORS CAN HELP YOU
Since the complexity is different in every country, good guidance in all areas is crucial to get a complete picture of the consequences on an international level. Our specialists are happy to assist you in guiding you through the maze of regulations.
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