As businesses approach the last quarter of 2015 they have an opportunity to review the first 9 months of the year and project what the rest of 2015 will hold for revenues and planned expenses. For clients that are foreign-owned, LSL helps develop cross-border tax planning strategies to take advantage of certain tax opportunities. These strategies focus on areas such as reducing tax costs, the redeployment of funds in a tax efficient manner, and establishing a tax effective structure when pursuing acquisition opportunities.
End of the year tax planning strategies should focus on the following:
- A fully integrated approach to global tax planning
- Identify and manage any possible adverse tax outcomes
- Provide up to date information on the latest US legislative, regulatory, and planning developments that impact U.S. inbound client groups
The following are tax strategies U.S. and foreign owned business should consider during year end:
- Maximizing retirement plan contributions for eligible US employees. This contribution may be tax deductible and will help lower the company’s tax liability.
- Maximizing income tax credits available such as Research and Development (R & D) credits.
- Review all loan covenants to make sure the company is meeting all the required ratios before and after tax planning strategies are integrated.
- Review all 2015 accounting standards updates with your CPA to ensure new reporting requirements will not negatively affect the Company’s 2015 financial statements.
- Compare year to date budget to actual results and be able to understand and support the results to your foreign owner.
Should you have any questions regarding these tax planning strategies please contact your LSL Advisor at 714.569.1000.
By: Maria T. Arriola, CPA
