Consultants Forum    |   FacilityLocations    |   FastFacility    |   Advertise    |   Subscribe    |   Newsletter    |   RSSRSS
Inward Investment Guides
Departments
Many Potential Taxes, But Chances for Negotiation
There are many taxes to consider when locating an operation overseas, but they also present opportunities to negotiate lower rates.
What taxes and/or incentives should U.S. companies be aware of that apply solely to moving some operations overseas?
 

Matt Highfield, Senior Vice President, Strategic Consulting, Jones Lang LaSalle
There are many tax considerations associated with the establishment of a new project and with ongoing operations overseas (both in the U.S. on the parent company and in the host country). The more notable taxes incurred for manufacturing operations include income tax, sales and use taxes (sales, GST, VAT, ICMS, etc.), and property tax. Many others apply.

There are typically a long list of fees that may apply to projects that also require research. Some examples include site maintenance fees, utility connection fees, permitting fees, construction fees, and import duties. It is important to understand such taxes and charges to refine the financial estimates of a project cost, but to also establish a foundation for the development of a negotiation strategy. It is often possible to obtain reductions, subsidies, refunds, rebates, or exemptions from many potential costs incurred by a project if negotiations are approached strategically.
X
Save/Share Article
If you have site selection or facility planning questions send them to Ask Area Development. A member from our network of industry experts, consultants, and authors will answer:


News Items
 
Around The Web
 
Studies/Research
News Items
 
Around The Web
 
Studies/Research