Tips and Tricks for CFO’s Global Expansion Alliance Webinar John Galvin, June

MY OBJECTIVES FOR THIS SESSION Help CFO’s prepare for issues when you expand internationally To give you some tips on what to do, and what not to do Highlight some key areas of risk Focus on how to manage international accounting and tax © Galvin International 2015

TOP TIPS Expect everything to take longer than in your home market – From commercial activities such as market penetration to back-office Get your tax and legal planning right up-front – Much more difficult to change once you’re up and running Expect the Unexpected – Every country has its own rules for payroll taxes, GAAP and taxation Choose your local staff or outsourcers carefully – Prioritise local technical competence, responsiveness, language skills, all-round scope Focus on compliance and record retention – International tax audits can take place years after the event © Galvin International 2015

KEY RISKS Legal Your in-country legal entity is the basis of all international accounting Finance compliance can vary according to type of legal entity Requirement for directors, board minutes, board meetings Taxes Calculating, filing and paying local Corporate Income Taxes Fully documented transfer pricing and interco recharge agreements Calculating, filing and paying Sales and Use taxes, or VAT Accounting Preparing, auditing and filing local GAAP accounts Management accounting Organising your international Finance team – in-house or outsource? © Galvin International 2015

Step 1 Management Accounts Step 2 Country Statutory Accounts Step 3 Corporate/Income Tax Return Local GAAP adjustments & notes Tax adjustments Finance Team Tax Team PROCESS FOR INTERNATIONAL ACCOUNTS AND TAX RETURNS

KEY RISKS Payroll Local payroll registration is required before 1 st payroll Calculating, filing and paying local salaries and employment taxes Specific rules can apply for expats and regular business travellers Sales Local regulations on format and content of sales invoices Local language works best for credit control The legal entity signing your sales contracts is critical for finance Banking Setting up a local bank account can take a lot of time and effort Looking at non-bank options for FX can save you a lot of money © Galvin International 2015

THANK YOU FOR YOUR ATTENTION © Galvin International 2015 CONTACT ME AT :