Importance of Knowing Tax

Liabilities in Holding Companies

When you are talking about taxes, this is a responsibility of

every earning company.

They have to pay taxes based on the

amount of income that they receive and it is their responsibility to prevent any kind of

problems in the future.

As for the value added tax or VAT, there are a couple of things that you need to know whether a holding

company should still pay it or there is an exemption.

Holding companies has been very popular

to many business-minded individuals

because the majority of the dividends given to the holding company

from their subsidiaries are often exempted

from tax.

For value added tax, there are a few basic functions that most holding companies do that will

exempt them from it.You have to remember

that your holding company will only be exempted from tax liabilities if you are

only doing these basic functions.

Acquiring Shares in Subsidiaries

Acquiring shares will not be taxable since you are not buying tangible

products or services from the

subsidiaries.

Obtaining Dividends from your Shareholdings

If you are only obtaining dividends from your subsidiaries based on the amount of shares that you

have, you are also exempted from tax.

Defending the Company and its Subsidiaries from

Takeovers

If you are only defending your company and its subsidiaries from takeovers, you can notify the taxing sector and provide some documents if they are questioning

this kind of thing.

You should be exempted of any tax if you are only defending your company and

subsidiaries.

Disposal of Shares in Subsidiaries

If you are disposing shares to subsidiaries, it doesn’t mean that you are selling products or they are buying something

for you. It is a pure investment

so no tax should be made from this.

Actually, all these activities cannot be considered as taxable supplies so if your company is only doing these activities, then you do not have to pay VAT.

Through the help of CEO, Nicholas Vita, President Bob Mayerson and the Board of

Directors, Chaired by Michael Abbott, all the processes in

the company is handled properly.

Columbia Care is also a popular holding company and they are

knowledgeable about these important facts about tax liabilities.

https://sites.google.com/site/thenickvita/