Here’s How an International Tax Consultant Can Help

International tax consultants are a good investment for any business that deals across borders—and in today’s global economy, that means most businesses—but what exactly is an international tax consultant, and what can he or she do for your company?

What is an international tax consultant?

An international tax consultant is, essentially, an accountant who has specialized in international tax laws. That means he or she has a professional understanding of all of the different tax laws that could apply to your business based on the financial contact points of your company. For instance, if your company operates out of the US, but has branches in Switzerland, Canada, England, and Australia, then your company needs to comply with not just US tax laws, but also the tax laws of those overseas and across the border locations. An international tax consultant will research tax laws, prepare tax returns, complete tax forms, and meet with clients: he or she will perform all of the duties necessary to ensuring your company remains compliant so you won’t be forced to face fines or even jailtime as a result of poor navigation of the tax world.

What are international taxes?

an international tax consultant can help you remain compliant with international taxes—but you should still have a good idea of what that international taxation entails so you can be sure that your business maintains full compliance with all of the laws it is subject to.

International taxation determines which international taxes your business is subject to. The basics don’t seem too complicated. Obviously, your business has to comply with all of the tax laws it is subject to based on where it does business. Where this gets complicated is in the fact that not all countries have the same or even similar tax laws, and the more countries your business interacts with, the more varied tax laws it becomes subject to. It can become a challenge just to keep informed about which taxes apply to you when and how without also having to fulfill those expectations and, on top of all of that, run a business. There are also likely to be limitations and exceptions, and knowing these may help your business get the tax breaks it needs to stay productive, especially in a rough economy like that of today. An international tax consultant can help ensure you don’t miss out on any opportunities for your business.

Where did international tax laws come from?

Before we can fully understand the importance of investing in an international tax consultant, we must first understand the importance of international taxation itself. The history of international tax law reaches back thousands of years to the first type of international business to arise: trade. Thousands of years ago, Mediterranean trade became tremendously popular for Mesopotamian, Greek, and Phoenician traders. As that international economy grew (into imperialism), so, too, did there need to be a development of a tax agreement. The first Bilateral Tax Agreement took place in 1843. It was then signed by Belgium and France, but that first form of international taxation was only the beginning; it continued to develop until World War I, when it began to play a much more significant role in international finance, trading, and investment. In other words, international taxation doesn’t just have longevity and staying power; it has also been around since the start of international economy, and that means it plays a key role in how our global economy has been shaped.