Compliance and Quantitative Analysis
U.S.-based multinational corporations must report foreign activity on an annual basis. WTP Advisors helps ensure accurate and timely reporting that provides valuable information for current and future year tax planning, and that helps tax directors manage their global effective tax rate.
International Tax Compliance
U.S. tax compliance requirements become more complex and burdensome when a company is doing business internationally. Meeting those requirements ensures accurate federal income tax returns and, if one occurs, a successful IRS audit.
Foreign Tax Credit Utilization
The foreign tax credit (FTC) generally eliminates double taxation on foreign earnings that are repatriated to the U.S., and is intended to enhance the global competitiveness of U.S. companies. WTP helps U.S. companies maximize the benefits of FTCs and lower tax expense with strategies and solutions including:
Foreign Earnings and Profits
Maintaining accurate foreign earnings and profits (E&P) and related tax pools is essential in determining a foreign subsidiary's effective tax rate and preparing accurate tax returns and financial statements. With increased attention by the IRS in recent years, a number of foreign tax computations are dependent on E&P including:
WTP's professionals, along with our global network, have the experience to assist clients with:
U.S. multinationals doing business outside the U.S. often intend to bring home all or part of their foreign earnings. In certain situations companies may instead wish to defer U.S. tax on earnings by keeping those earnings invested abroad-at least temporarily. Our experienced tax professionals work closely with clients to design tax-effective global cash management strategies that complement and integrate with their business strategies.
The allocation and apportionment of expenses impacts the calculation of the foreign tax credit, IC-DISC export tax incentives, and the domestic production activities deduction (DPAD). These tax benefits and others may be limited by the amount of income from U.S. and non-U.S. sources. The firm works closely with its clients to understand the factual relationship between its deductions and the various statutory groupings of income. Working within the IRS rules we help identify those apportionment methods that will produce the most favorable overall results.
Transfer pricing is a term used to describe all aspects of intercompany pricing arrangements between related business entities, including transfers of tangible goods, transfers of intellectual property, providing intercompany services, and financing transactions. Transfer pricing affects a multinational company's tax planning and financial statements, and has a high profile with both the IRS and increasingly strict foreign tax authorities.