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International Tax Planning

Comtax

Ensure you have considered all tax treaty opportunities with Comtax

Comtax is the only software, worldwide, to offer a tax management software suite, specially tailored for international tax professionals.

The “what-if” simulation system allows the tax professional to quickly identify the optimal cross-border tax planning strategies by reference to the database of tax rates and treaties across 120 countries.

Employing a unique combination of international tax and software system experts, Comtax has developed a tax planning system which focuses on the fact that “the only efficient way to structure an international payment is to calculate all the tax effects of all alternative ways using the specific parameters of a particular tax problem”.

As this is a virtually impossible task to perform manually — for both cost and manpower reasons — a computerised system was developed that, within seconds, mathematically analyses the tax impact on cross-border ownership, finance and licence structures (dividends, interest and royalties).

The system is continuously refined and since 1985 it is in daily use by multinational corporations, banks, tax consultants and lawyers all over the world — providing them with the tools for minimising tax on cross-border repatriations and capital gains on shares.

Key Features 

Comtax Basic

Comtax® Basic is the first building stone in the Comtax® System.

It provides search abilities and information for cross-border payments of dividends, interest and royalties to and from 120 countries/entities worldwide, supported by an extensive reference database. Monthly updates are available via the Internet.

Simulation & Planning

By adding this dimension to Comtax® Basic, the real power of the Comtax® System is released. For selected countries (20, 40, 60 or 120) limitless scenarios can be simulated and analysed. Underlying data and settings can be modified in a project environment in which current and future factors can be considered.

 

Capital Gains

This module computes and analyses the capital gains taxation on cross-border sales of shares. It automatically applies the capital gains consequences of a sale on any simulated ownership scenario.

The Capital Gains modules considers items such as the size and time of the shareholding, the taxation rates prevailing in the country of the company issuing shares, the taxation in the country of the seller and the influence of the country of the purchaser.

Thin Capitalisation

In the process of capitalising a company by debt or equity, it is important to analyse the thin capitalisation situation. This is due to the fact that a capitalisation through a loan, which generally is the preferred solution, from the investors' point of view, might lead to a less advantageous tax situation when confronted with such anti-avoidance rules.

This function considers the thin capitalisation from both the borrowing company and the lending company's perspective.

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