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4 Tax Planning Strategies for Your Global Business

One of the best parts about running a business is the flexibility that a global economy can afford you. In today’s connected world, we can run a company anywhere, allowing us to take advantage of international tax planning. 



Tax haven

One of the best parts about running a business is the flexibility that a global economy can afford you. In today’s connected world, we can run a company anywhere, allowing us to take advantage of international tax planning.

However, companies that fail to implement strategic international planning are subject to pay high foreign taxes. This guide will cover the best strategies to manage customs, duty costs, and withholding taxes.

What Is Tax Planning?

International tax planning requires understanding offshore regulations to help you ethically pay the least amount of taxes possible. The best way to reduce a company’s tax burden is to hire consultants with a corporate accountant such as MI Tax CPA.

CPAs do more than file taxes for you. These experts devise a comprehensive plan by considering all the available codes and regulations to limit your liability.

With their expertise, CPAs can develop various strategies to optimize taxes for a global business. The four most prevalent strategies are below:

1. Foreign Credit

Foreign tax credits help to avoid double taxation by offsetting income from taxes paid abroad. The credit is for U.S. citizens who also have to pay income taxes in a foreign country. As a result, they receive a deduction in their U.S. federal income tax. You can utilize the money you’ve saved from foreign credits to scale your international business.

2. Tax Calculators

Business decisions may have unexpected consequences that can catch leaders off guard. Before expanding global sales, hiring international talent, or outsourcing work, consider the potential international obligations for taxes owed. Remember, being non-compliant can lead to unexpected fees and penalties.

Use an international tax calculator to ensure you understand any ramifications or outcomes that may come your way due to your business decisions.

3. Tax Havens and Offshoring

With many foreign countries looking to stimulate their economies, some countries have adopted tax-friendly policies. There are roughly 40 tax havens around the world. People have become more mobile, and many digital nomads and business owners relocate to countries with lucrative advantages.

For example, it’s possible for businesses to establish specific business functions in another country, such as call centers or manufacturing centers, to receive offshoring benefits. Additionally, the cost of goods, materials, and labor may be cheaper, allowing businesses to increase their profits.

4. Deferral

Paying taxes upfront can be costly and stunt the growth of your international business. Deferral is a strategy that allows you to keep more capital in your pocket and reinvest it into your business.

This strategy lets you defer taxes on earnings and contributions. For example, contributing to pre-tax funds like an annuity premium can reduce your taxable income. You still have to pay taxes once you take money from the fund. However, as interest accumulates over a longer time horizon, the taxes owed would be less than paying upfront.

Final Thoughts

Businesses that sell globally, have a foothold in another country, or outsource intellectual property abroad must abide by the foreign country’s jurisdiction. Systematic international tax preparation is the most effective way to reduce the amount owed to the government. These strategies can help ensure you comply with your business and home country’s tax obligations while giving you a competitive advantage in the global market.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq,, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Increased Cost of Customs Duty, Forex Crisis Affects Used Vehicles Imports Volume in Nigeria



New vehicles

Used Vehicles auto dealers in Nigeria have expressed concern over the decline of Tokunbo car imports volume in 2022.

According to the dealers, Tokunbo car imports dropped by 47% as a result of the increased cost of customs duty and the forex crisis.

These auto dealers disclosed that the increased cost of duty on used vehicles by Nigerian customs has affected their car sales. They lamented that the import duties have also affected the number of cars they import into the country which has drastically reduced.

It would be recalled that in April 2022, the Nigerian customs announced that it would update the importation of car edition from 2017 to 2021 in compliance with the ECOWAS Common External Tariff (CET) to the 2022-2026 version in which used cars coming into Nigeria are expected to pay a 20% tariff rate and a NAC levy of 15 percent.

The NAC levy, coupled with the Value Added Tax (VAT) of 7.5 percent, results in an almost 50 percent levy that is now paid on the importation of used vehicles in Nigeria.

Speaking on the decline of the importation of used vehicles in Nigeria, regional manager of Auto Auction Mall Oluwafemi Amisu said that the increase in import duties has 100 percent played an important role in the reduction of importation of used cars into Nigeria.

He also attributed the benchmark of car models to an increase in shipping cost leading to an increase in the price of the vehicles.

Shipping companies that formerly used 2,300 vehicle capacity vessels to ship into the country have visibly downsized to 1,000 or 1,500 capacity vessels.

“Majority of transactions made by Nigerians importing vehicles are within the 08-010 model range, which typically cost N400, 000 –N600, 000 to clear. However, since 2014 has been chosen as the benchmark, clearing costs have increased to between N1 million and N1.7 million,” he added.

Also, another challenge that has been attributed to the decline of importation of used vehicles in Nigeria is the Forex crisis which auto dealers lament has affected the purchasing power of customers. They added that people now prefer to buy Nigerian used cars instead of foreign used cars, even so, Nigerian used cars have also become very expensive.

Findings by Investors King reveal that the duty rate is majorly the reason for the drop in the importation of used vehicles, as most of the vehicles coming into Nigeria are below 2013, which mandates that any auto dealer bringing any car lower than that into Nigeria will pay a duty of 2013. Due to this, most of the vehicles are reportedly passing through Cotonou Port.

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Ajay Banga Nominated as Sole Candidate for World Bank Presidency



Ajay Banga

The World Bank Group’s Board of Executive Directors has announced that Ajay Banga, a United States national, is the only nominee for the position of the next president of the bank.

This news follows US President Joe Biden’s nomination of Banga to lead the World Bank in February, citing his suitability for the role at “this critical moment in history.”

Banga, who was born in India and is a naturalized US citizen, is currently serving as vice chairman at General Atlantic and previously worked as the chief executive of Mastercard Inc. If confirmed, he would become the first-ever Indian-American to head either of the two top international financial institutions: the International Monetary Fund and the World Bank.

The World Bank’s Board of Executive Directors will now conduct a formal interview with Banga in Washington D.C., with the expectation of concluding the presidential selection in due course. The current president of the World Bank, David Malpass, is set to step down in June, nearly a year before his term is scheduled to expire, and Banga is expected to replace him.

Banga’s nomination comes at a time of increasing global economic uncertainty, with the COVID-19 pandemic exacerbating pre-existing inequalities and challenging the resilience of many countries’ financial systems. As such, the incoming World Bank president will face significant pressure to navigate the institution through these difficult times, while also addressing concerns around climate action and the role of the World Bank in promoting sustainable development.

While Banga’s nomination as the sole candidate for the position of World Bank president may come as a surprise to some, it also reflects the United States’ historical dominance in the governance of international financial institutions. However, it remains to be seen how Banga will use his position to shape the future direction of the World Bank and address the complex challenges facing the global economy.

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Company News

Unilever Nigeria to Focus on Higher Growth Opportunities by Exiting Home Care and Skin Cleansing Markets




Unilever Nigeria Plc, one of the leading Fast-Moving Consumer Goods (FMCG) companies, has announced its decision to exit the home care and skin cleansing markets.

The company disclosed that the decision would only affect three of its brands – OMO, Sunlight, and Lux. According to Unilever Nigeria, the move is aimed at accelerating the growth of the organisation and sustaining profitability.

The restructuring of Unilever Nigeria’s business model is in response to the tough business environment in Nigeria, where many organisations and individuals have found it difficult to access cash due to the Naira redesign policy of the Central Bank of Nigeria (CBN).

Unilever Nigeria’s Managing Director, Mr Carl Cruz, noted that the offloading of the home care and skin cleansing portfolios would enable the company to “concentrate on higher growth opportunities.”

Unilever Nigeria has a strong competition in the business categories it is exiting. However, the company’s products are also market leaders in the sector. Mr Cruz added that the company was repurposing its portfolio by gradually exiting two categories, home care and skin cleansing, affecting only three brands (OMO, Sunlight, and Lux).

This would allow Unilever Nigeria to drive the rest of its brand portfolio for growth into the future and strengthen business operations with measures to digitize and simplify processes.

Unilever Nigeria is a truly Nigerian business and the oldest serving manufacturer in the country. The company’s decision to exit the home care and skin cleansing markets is in line with its commitment to adapt to changing market circumstances and reposition itself to better meet the needs of its consumers, shareholders, and employees.

Mr Cruz said, “By making these changes, we will unleash the sustained and profitable growth we need to be here for the next 100 years as well.”

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