17 Strategies To Prepare For Changes In Corporate Tax Structures
As tax policies evolve, companies must be proactive about potential changes in corporate tax structures that could affect business. Business leaders must stay informed, adapt their strategies and ensure compliance to protect their financial health and operations.
From consulting with tax experts to leveraging technology for forecasting, preparation is key to mitigating risks and identifying opportunities for changing tax structures. To help your business stay ahead, Forbes Finance Council members share their top tips for preparing for shifts in corporate tax structures across various regions below.
1. Monitor Potential Tax Reforms Regularly
One tip is to stay proactive with global tax planning by regularly monitoring potential tax reforms in key regions. Work with tax advisors to create flexible strategies that can adapt to changes in corporate tax rates, deductions and compliance requirements. This allows companies to minimize tax risks, optimize their tax liabilities and ensure continued profitability across regions. - Terry Lamb, TLAMB INC.
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2. Track And Analyze Data In Real Time
Stay ahead of corporate tax changes by setting up systems to track and analyze tax data in real time and adopting tools like automated reporting to simplify compliance. Engage tax, legal and IT teams to centralize information and stay agile as regulations evolve. Preparation today avoids surprises tomorrow! - Michael Foguth, Foguth Financial Group
3. Implement A Dynamic Tax Monitoring System
To prepare for potential changes in corporate tax structures, companies should implement a dynamic tax monitoring system paired with scenario analysis tools. This enables real-time tracking of legislative updates across regions and helps model their financial impact. Integrating finance, legal and tax teams ensures adaptability, reducing risks and optimizing compliance strategies. - Ivan Lunegov, Olimp Capital Partners
4. Create An LLC Under IRC 721
Prepare for changing tax structures by creating an LLC under IRC 721 with capital contributions to hold company-owned life lnsurance. This innovative strategy offers tax-deferred growth, liquidity and risk protection while adapting to tax shifts. Being curious about this strategy might just transform corporate tax planning. - Andre Pennington, Pennington Law
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5. Implement Robust Scenario Planning And Tax Modeling
One tip is to implement robust scenario planning and tax modeling. By analyzing potential tax changes across regions, companies can assess their impact on cash flow, profitability and compliance. Maintaining a knowledgeable global tax team and leveraging technology to monitor regulatory updates ensures readiness and agility in adapting to evolving corporate tax structures. - Ravi Gullapalli, Fastra Investments
6. Consider Using Advanced Tax Compliance Software Or ERP Systems
Implementing advanced tax compliance software or enterprise resource planning systems helps streamline tracking and reporting across multiple jurisdictions. These tools can automate tax calculations, flag inconsistencies and provide real-time insights into the evolving tax landscape. By leveraging technology, businesses gain agility and reduce the risk of costly errors during transitions. - Tomas Milar, Eqvista Inc.
7. Create A Regional Tax Resiliency Fund
Establish regional tax resiliency funds. These are dedicated reserves set aside to address unforeseen tax liabilities or compliance costs arising from abrupt regulatory shifts. This minimizes financial strain while allowing companies to adapt operations seamlessly. - Neil Anders, Trusted Rate, Inc.
8. Monitor Regulations In Your Target Countries Consistently
The biggest tip is to constantly monitor regulations in your target countries. Focus on tracking and modeling upcoming tax changes in high-risk markets (such as the EU and China) and ensure you have the proper holding company structures to optimize global tax exposure. - Trixy Castro, TRX Capital
9. Follow A Flexible And Proactive Tax Strategy
Implement a flexible and proactive tax strategy that incorporates regular tax planning and forecasting. This means staying informed about potential tax law changes, whether they are at the federal, state or international level, and adjusting your tax strategy accordingly. - Bob Chitrathorn, Wealth Planning By Bob Chitrathorn of Simplified Wealth Management
10. Hire A Tech-Forward Tax Advisory Service
Partner with a tech-enabled tax advisory service that provides real-time updates and automated compliance monitoring across different jurisdictions. This proactive approach helps businesses stay ahead of regional tax changes while minimizing the risk of non-compliance or missed opportunities for tax efficiency. - Joseph Lustberg, Upwise Capital
11. Ensure Compliance
Staying compliant and proactive is essential. You can’t simply step away after setting up complex offshore systems. Regulators in G20 countries have ramped up efforts to enforce global taxation policies. Establishing a robust system—digital or otherwise—is critical to effectively track, monitor and respond to regulatory changes in the regions where your businesses operate. - Lechi (Richard) Zhang, Stonelake Capital
12. Follow A Tax Agility Framework
Developing a tax agility framework can help companies to prepare for potential changes in corporate tax structures. This structured approach allows businesses to adapt quickly to changes in corporate tax laws across regions. It should include a robust tracking system for legislative updates, financial modeling tools and access to a network of tax advisors who are experts in regional tax policies. - Jared Weitz, United Capital Source Inc.
13. Be Adaptable
Build adaptability into your business model. Focus on real-time data analytics and scenario planning to map out the impact of potential tax changes. Stay nimble—align global operations with evolving policies while keeping innovation and efficiency at the core. Simplify processes, stay ahead of trends and treat change as a launchpad for growth, not a hurdle. - Shivali Kukreja , NIB NZ
14. Rely On The Experts
Taxation changes in regions outside your home country may be a daunting threat. Considering many cultural and language barriers, you may be caught by surprise with new laws. Relying on the experts –firms that specialize in international taxation—can be a prudent investment. You won’t need to use one of the industry giants, either. There are many boutique firms suited to your company’s size. - David T. Nudelman, Scandinavian Capital Markets
15. Conduct Regular Scenario Analyses
To prepare for potential changes in corporate tax structures across regions, companies should build a robust tax strategy by conducting regular scenario analyses and staying informed through tax bulletins from "Big Four" accounting firms. Monitoring global tax reforms and collaborating across finance and legal teams ensures adaptability, helping businesses navigate evolving policies efficiently. - Amit Jain, Dhruva Advisors USA Inc.
16. Be Proactive
One tip is to be proactive. Taking action to understand what's changing in your business well ahead of time gives you the utmost time to respond. - Joe Camberato, National Business Capital
17. Leverage Technology
It's essential to implement technology. It can help you centralize, automate and monitor your taxes across regions. - Richard Okon, St Nicholas Hospital