Last week, RASK's expert in the field of international tax law Annika Soom was a guest speaker at Äripäev radio, where she spoke about the tax risks associated with the expansion of companies into foreign markets. The discussion covered the Maltese and Dutch tax schemes, the conditions for paying taxes abroad and in Estonia, double taxation, transfer pricing issues, the posting of workers abroad and foreign recruitment.
"When planning to expand into foreign markets, it is worth drawing the so-called big picture: including mapping, what are the markets to be entered, what business activities will take place and how it affects the planned structure. The analyze should be conducted from the perspective of both VAT and income tax but also employment taxes," suggests Annika to the companies’ managers.
Such preparatory work is not expensive, but it significantly reduces costly tax risks and also helps to find the most favorable solutions for structuring the company's business.
Annika Soom is a member of the Tax Law Committee of the Estonian Bar Association and an advisor to international corporations and to several fast-growing startup companies of Estonian origin.