Tax Planning

Why Tax Planning Matters in High-Risk Industries

Cross-border transactions are a standard part of doing business in today's day and age, especially in high-risk industries. These sectors are inherently international, requiring proper management of tax positions and transactions between both associated and non-associated entities.

When businesses expand internationally, many of the same principles apply from a tax point of view. However, there are certain recurring taxable events that are often more specific to high-risk industries (to a certain extent). 

Take the adult industry, for example. Global marketplaces are common, and these platforms must either register for OSS in a single EU member state or for VAT in multiple member states, depending on where the clients are located. It’s also common to separate the IP related to these marketplaces from the actual operations. 

Meanwhile, in the crypto industry, it's often necessary to structure operations in a way that ensures token sales remain tax-free for the purpose of a token raise. These crypto-related activities also face specific tax risks that need to be carefully managed.

You can get in touch with our team if you require expertise on any of the following topics:

• International tax planning;
• Transfer pricing;
• Tax compliance (CIT, VAT, dividend withholding tax, wage tax returns);
• Cross-border structuring (CIT, VAT, Dividend tax);
• Tax risk management.

At FirmEU, we offer tailored tax planning services designed to navigate the intricate challenges faced by high-risk industries. Our team ensures risk is managed, profitability is enhanced, and compliance with global tax regulations is maintained.