Advisory on cross-border transactions
Optimize your cross-border transactions with Stratify’s advisory, helping you manage tax risks and ensure regulatory compliance.
Cross-Border Transactions
Cross-border transactions refer to any financial, commercial, or business activity that takes place between parties in different countries. These transactions can include:
- The purchase and sale of goods or services between entities in different jurisdictions.
- Foreign direct investment (FDI), such as acquiring or establishing businesses abroad.
- Intercompany transactions, including licensing of intellectual property, loans, and the provision of services within multinational groups.
- Cross-border mergers and acquisitions (M&A).
While these transactions provide businesses with growth opportunities, they often involve dealing with multiple tax systems and regulatory requirements. Double taxation – where the same income is taxed in two or more countries – is a significant concern, and proper planning is essential to minimize the tax burden and ensure compliance with international tax regulations
Double Taxation and Its Implications
Double taxation occurs when two or more countries impose tax on the same income or transaction. For example, a business may be taxed on its profits in both the country where the transaction took place and the country where the business is headquartered.
Double taxation can be direct (where the same income is taxed by multiple jurisdictions) or indirect (where income is taxed at multiple stages of a transaction). Without proper management, double taxation can erode profits and increase operational costs.
Jurisdictional Double Taxation
Occurs when the same income is taxed by different countries under their respective tax systems.
Economic Double Taxation
Occurs when the same economic activity is taxed twice in the hands of different taxpayers (e.g., both a company and its shareholders).
Cross-Border Transaction Advisory: Our Approach
Tax Planning and Structuring
We help businesses structure cross-border transactions to minimize tax exposure while ensuring compliance with local and international tax laws. By analyzing the tax implications in each jurisdiction, we ensure that you benefit from applicable tax treaties, exemptions, and credits.
Double Taxation Relief
Our experts conduct a detailed analysis of double taxation risks for each cross-border transaction. We identify potential double taxation scenarios and help clients take advantage of Double Taxation Agreements (DTAs) to reduce or eliminate double taxation. Where no DTA exists, we advise on unilateral relief options available under local tax laws.
Transfer Pricing Compliance
Transfer pricing plays a crucial role in cross-border transactions, especially for multinational companies. We ensure that intercompany transactions (such as goods, services, and intellectual property transfers) comply with the arm’s length principle, reducing the risk of tax adjustments and penalties.
Permanent Establishment
Analysis Determining whether a business activity in a foreign country creates a permanent establishment (PE) is essential, as it can trigger additional tax liabilities. We conduct a PE analysis to assess the tax implications of your cross-border operations and advise on strategies to minimize exposure.
Withholding Tax Optimization
Cross-border transactions often involve withholding taxes on payments such as dividends, interest, and royalties. We help you optimize withholding tax rates by applying relevant DTA provisions or local exemptions to reduce the overall tax burden on your cross-border transactions
Why Choose Stratify for Cross-Border Transaction Advisory?
At Stratify, we offer unparalleled expertise in cross-border tax advisory services, combining deep knowledge of UAE and international tax laws with a client-focused approach. Our team of professionals is committed to helping your business navigate the complexities of cross-border transactions, ensuring compliance, minimizing tax liabilities, and maximizing profitability.
Benefits of Working with Us:
Expertise in Double Taxation Relief
Our team has extensive experience in interpreting and applying Double Taxation Agreements to mitigate tax burdens
Tailored Solutions
We provide customized tax strategies aligned with your specific business needs and international footprint.
End-to-End Support
From initial tax planning to ongoing compliance, we are your trusted partner throughout every stage of your cross-border transactions.
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Our Other Corporate Tax Services
Corporate Tax Impact Assessment
Corporate Tax Registration
Corporate Tax Return Filing
Transfer Pricing Impact Assessment
Transfer Pricing Compliances
Advisory on cross-border transactions
Tax Residency Certificate
Permanent Establishment (PE) Analysis
Place of Effective Management (POEM) Analysis
FTA Private clarifications
Tax Reliefs/Exemptions
Tax Representation
- Corporate Tax Impact Assessment
- Corporate Tax Registration
- Corporate Tax Return Filing
- Transfer Pricing Impact Assessment
- Transfer Pricing Compliances
- Advisory On Cross-border Transactions
- Tax Residency Certificate
- Permanent Establishment (PE) analysis
- Place of Effective Management (POEM) Analysis
- FTA Private Clarifications
- Tax Reliefs/Exemptions
- Tax Representation
Our Services
Stratify Corporate services is an independent and international organisation with a specialization in crafting sustainable solutions and strategies
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Ensure full compliance with UAE’s Value Added Tax regulations through tailored advisory, registration, filing, and VAT health check services.
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Navigate UAE’s corporate tax landscape with strategic tax planning, filing, and compliance support to optimize your tax position.
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We assist businesses in understanding and complying with excise tax regulations, including registration, filing, and audit preparation.
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Audit & Assurance
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Economic Substance
Anti-Money Laundering
Protect your business by staying compliant with UAE’s AML regulations, with risk assessments, monitoring, and reporting solutions.
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FAQs for Cross-Border Transaction Advisory
What are cross-border transactions?
Cross-border transactions involve business activities between entities in different countries, including trade, investments, and intercompany dealings
How does double taxation affect cross-border transactions?
Double taxation occurs when the same income is taxed by multiple countries, leading to higher costs. Tax treaties help mitigate this issue.
What is a Double Taxation Agreement (DTA)?
A DTA is an agreement between two countries that determines which country has the right to tax specific types of income to avoid double taxation
How can Stratify help with transfer pricing?
We ensure compliance with the arm’s length principle, reducing risks of tax adjustments in cross-border intercompany transactions
What documentation is needed for cross-border transactions?
Required documents include transfer pricing reports, DTA certificates, withholding tax forms, and permanent establishment assessments.
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Ready to Simplify Your Journey?
At Stratify, we are committed to helping businesses in the UAE and beyond achieve full compliance with transfer pricing regulations while optimizing their global tax strategies. Contact us today to learn how our transfer pricing impact assessments and benchmarking analysis services can benefit your business.
