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  • Expanding Overseas

    Despite economic, political and social challenges across the globe, expanding overseas remains high on the agenda of UK businesses. Where a UK business has plans for expanding overseas, tax issues and opportunities are almost certainly going to arise.

    Entry to new markets

    Once a business has been successful in its home country, expanding its operations overseas will allow the business to access new markets, with the potential to build a new customer base.

    Increased business growth

    Entering overseas markets can allow businesses to grow faster. By extending its global footprint, new customers and audiences can experience your product or service, which could lead to further expansion.

    Regional centres

    Setting up regional centres overseas can allow you to provide a reliable service to your international clients, by reducing operational costs and hiring local workers who know the local language and customs.

    Expanding overseas: in detail

    Where a UK business has plans for expanding overseas, tax issues and opportunities are almost certainly going to arise. SMEs and entrepreneurs seeking to do business overseas need to understand, and prepare for, the nuances of conducting international business, including overseas tax planning and compliance. However, rules and regulations vary by country and jurisdiction, and they are constantly changing. Regardless of where you choose to operate across the globe, it is a certainty that the local tax authority will be focused on seeking a tax contribution from your business.

    The act of trading or selling to consumers within an overseas market may be enough to trigger local tax and regulatory liabilities. The way you operate in a jurisdiction will be critical in determining your tax liability. Usually, a company will have a taxable base if it is resident in a country in which it is doing business or, instead, has a permanent establishment in the country.

    There is a broad range of tax issues to consider when expanding your business overseas into new markets. Some of the aspects to consider include:

    • Do double tax treaties exist in the markets you are looking at, to avoid paying double taxes?

    • What are the rules relating to withholding and other local taxes?

    • Transfer pricing rules – how do they operate?

    • Is VAT registration required or a local equivalent?

    • How will profits be repatriated to the UK and UK shareholders?

    • How might existing assets be transferred overseas without triggering any undesirable tax charges?

    Seeking professional tax advice will ensure all relevant issues, liabilities and reliefs are identified from the outset, enabling appropriate strategies to be devised and implemented in support of your overseas expansion plan.

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    Please provide as much detail as possible in regards to the reason for your enquiry so our tax advisers can prepare and tailor their response to reflect your needs. We will endeavour to - respond / call you back - to discuss your enquiry and you will not be charged for this time.

  • This field is for validation purposes and should be left unchanged.