Strategic tax planning for multinational corporations: Developing holistic approaches to achieve compliance and profit optimization
1 Independent Researcher, Lagos, Nigeria.
2 Standards Organization of Nigeria.
3 Newcross Exploration and Production Limited, Nigeria.
Review
International Journal of Multidisciplinary Research Updates, 2023, 06(01), 025–032.
Article DOI: 10.53430/ijmru.2023.6.1.0065
Publication history:
Received on 10 July 2023; revised on 18 September 2023; accepted on 22 September 2023
Abstract:
Strategic tax planning has become increasingly critical for multinational corporations (MNCs) as they navigate a dynamic global tax environment. This paper explores the challenges and opportunities associated with tax compliance and profit optimization, focusing on the complex interplay of international tax laws, reputational risks, and regulatory audits. Key insights include the transformative impact of initiatives such as the OECD/G20 Base Erosion and Profit Shifting (BEPS) framework, trends in digital taxation, and the implementation of global minimum tax rates. The paper emphasizes the importance of holistic approaches, including the integration of tax planning into business strategy, leveraging advanced technologies for tax optimization, fostering collaboration with stakeholders, and aligning tax practices with Environmental, Social, and Governance (ESG) principles. Recommendations are provided to help MNCs achieve sustainable compliance while maximizing profitability, ensuring their adaptability and success in an increasingly transparent and interconnected tax landscape.
Keywords:
Strategic tax planning; Multinational corporations; BEPS initiatives; Digital taxation; ESG principles; Global minimum tax rates
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0