What Is an International Re-Invoicing Strategy?

Re-invoicing is the using the lowest or no tax company to behave as an intermediary from a business established in a single jurisdiction, typically an increased tax jurisdiction, and it is customers outside its home jurisdiction. The domestic business sells its products, having a small profit, on the non-or low taxed company which intern marks the product or service up towards the original price tag, and sells the item for the customers not in the onshore company’s jurisdiction. Profits of the intermediary accumulate at zero or low tax rate while the small profits with the onshore business are taxed at its jurisdictional rates.

International re-invoicing strategy, for example

An onshore business sells $1,000,000 of products annually to some company established beyond your jurisdiction where the onshore company is established, as a British company sells to a Spanish company. Assuming that operating expenses and the price of products are $500,000, the British company earns $500,000 on its sales before taxes. Taxes average say 45% or $225,000 thus reducing net profits to $275,000.

To utilize a worldwide re-invoicing strategy the British company would utilize a non taxed company, like a company established in Belize, Panama, or other tax haven location, to serve just as one intermediary involving the British company and its particular Spanish customers. The British company sells its goods to the Belize company on credit for $600,000. The Belize company, therefore, sells the products for the Spanish customer for $1,000.000. The Belize company thus earns $400,000 in profits. Since there are no taxes in Belize on international transactions, the $400,000 of profits doesn’t have any taxes imposed on it.

The British company shows a tiny profit of $100,000; an income of $600,000 less than the cost of goods sold of $500,000. Assuming a 45% tax, the British company would pay …

Read more

What Is Gamification and How Can Businesses Benefit From It?

What Is Gamification and How Can Businesses Benefit From It?

An emerging technological trend, gamification is the process of integrating game dynamics into a web-based portal, web content, services, or campaign. Essentially a new concept, utilizes game mechanics in a very non-gaming enterprise, using the function of boosting audience engagement and driving brand loyalty.

Also thought to be a playful yet intelligent means of solving enterprise problems and achieving desired business results, gamification may contain the application of badges, progress bars, or virtual prizes. When integrated into an organization’s process portfolio, intelligent gamification is expected to switch behavior, trigger innovation, and alter engagement altitudes, effecting the advanced level of participation.

The term “gamification,” is dangled since the next frontier in mobile and internet promotion. The concept is based on the principle of how the present and younger generation is a bit more attuned to games as compared using the earlier age brackets. Currently, gamification is adopted in a broad range of applications, like employee programs; wellness or personal activities; shopping on the web; financial services; primary education; project management; extreme sports; along with loyalty, and brand sustainability programs.

A recent Gartner, Inc. report is predicting that by 2014, “gamified services” can become the game for customer retention and marketing of consumer goods. By 2015, 50 percent of organizations will probably be routing their business and software strategies toward the gamification of these innovation processes. With over 70 percent of Global 2000 firms having one gamified application at the least, the value of the theory will probably be tantamount for it of eBay, Facebook, and Amazon.

Discussions in the September 2011 Gamification Summit in New York also ascertained that gamification is utilized to enhance the performance of employees. Startups and big firms that are searching for to attract, train, retain, or incentivize personnel are increasingly looking at the buzz, and are …

Read more