Substance Requirements Tax Planning

Tax substance solutions are becoming an essential feature of international tax planning procedures. Tax authorities around the world use substance tests to check whether foreign companies are entitled to tax treaty benefits. 

These tests gauge whether the company is operational and valid for tax benefits by checking whether the receiver of the interest income is the beneficial owner of the income and whether the company is just a shelf firm created to avoid taxes.

Appropriate tax substance solutions should be mainly based on the following factors:

  • The company should have proper functions and undertaking business risks

  • The company should have employees

  • The company should have directors with appropriate decision-making powers

  • The company should have proper premises and assets

Europe Emirates Group offers tax substance and tax planning solutions based on the needs of each client. Substance requirements differ from country to country and are affected by the nature of the company activities.

Our tailor-made tax substance solutions include:

  • Assistance for renting premises and purchasing appropriate furniture and equipment

  • Support for preparing business procedures

  • Providing directors and employees (can be part-time) with relevant knowledge and experience

  • Developing the company website

In the world of international incorporation, with its natural overspill into tax optimisation and asset management, having a robust ethical framework is vital. Europe Emirates Group ensures it operates to the highest international standards – in terms of compliance, legalities and partnerships. We guarantee to cover all basis. 

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