Economic substance compliance health checks

To retain their local tax advantages, international companies must frequently meet minimum standards of in-jurisdiction economic substance regulations. Navigating the regulatory detail – one jurisdiction at a time – can be fraught with risk.

TMF Group’s global network of experts keep you on the right side of these complicated regimes across the entire footprint of your global operations.

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What is economic substance?

The more local presence and business activity an international company brings to a given market, the greater its ‘economic substance’ in the eyes of the tax authority.

For a multinational with little or no local business activity there can be adverse tax consequences in that jurisdiction.

Encouraged by the OECD’s new global standards and the EU’s blacklist of non-cooperative tax jurisdictions, tax authorities all over the world are now policing their economic substance requirements much more stringently. 

Economic substance reporting with TMF Group

TMF Group’s worldwide network of local regulatory experts are ideally placed to accurately assess your local economic substance requirements, jurisdiction by jurisdiction, helping you remedy any shortcomings. We will help to keep you compliant with local economic regulations and legislation, meeting global standards across your entire operations.

One world of local service

TMF Group is an independent global multinational with some 7,800 in-house experts across 120 offices covering 80-plus jurisdictions. Together we deliver a broad portfolio of consistent, integrated but localised services covering the business administrative essentials of accountancy and tax, HR administration, global payroll and employee benefits, and global entity management, corporate secretarial and regulatory compliance.

Rapid response consultancy solutions support cross-border projects large and small, at every stage, across all our disciplines, and in every market.

Specialised teams support fund and capital markets administration and private wealth and family offices.

Because we know how to unlock access to some of the world’s most attractive markets – no matter how complex – swiftly, safely and efficiently, more than 60% of the Fortune Global 500 and FTSE 100, and almost half the top 300 private equity firms, use us.

So, whether you are operating across one border or many, with a handful of staff or several thousand, we have all the flexible, coordinated, business-critical support you need to open up in new markets, build strong businesses and stay nimble, efficient and in good standing everywhere.