Bharat SainiLast Updated on November 20, 2024 by Bharat Saini
As an international tax expert, you have to seek creative solutions to any surprising issues. Plus, you need to stay up-to-date with the latest taxation changes, especially if you are working on success as an international tax consultant.
Taxation At A Glance
For sure, you will agree that tax is one of the unavoidable things in life. Plus, it affects every organization, company, and person.
Who would not like to save on tax bills? No doubt, everyone will say YES. Besides savings, people want someone else to the tax paperwork for them. Good thing, tax professional came into the scene.
Everyone wishes to hire tax professionals to find effective ways to save money, know the tax law, do the calculations and paperwork, and explain complicated terms in an easy-to-understand manner.
Careers in Tax: Consultancy and Compliance
Beware that the tax role comes in two major parts: consultancy and compliance.
Consultancy
Consultancy refers to the tax business’s problem-solving side. Tax advisors or consultants ensure that the finances of their clients are tax-efficient. In other words, they know and understand the inside out of the finances while taking advantage of all of the loopholes, tax breaks, and tax structures available.
Compliance
Compliance refers to the tax’s nitty-gritty or the paperwork. Completing the clients’ tax returns based on the current regulations and then file them on time is one critical tax compliance job. Tax professionals might do the paperwork, accounting, and calculations for estate planning or family trusts set up, depending on the specialization.
International Tax Manager: What You Need to Know About This Career in Tax
Tax managers are expected to create and implement taxation strategies. They are responsible for supporting individuals and businesses to ensure tax responsibilities and compliance accuracy with all the applicable tax laws.
Tax Management Career Paths
Tax management comes with several carer paths. Each path may have the same obligations but has varying responsibility scope. Some tax managers work as consultants to help individuals and businesses, while others prefer working for a single company. Additionally, they specialize in specific tax types, like business and property taxes.
In-House Tax Management Career Path
Generally, in-house managers function as seniors leaders in an organization. One of their primary roles is to achieve the organization’s tax goals. In a consulting role, they support some clients.
Tax managers are responsible for preparing the tax documents and conducting audits to ensure information accuracy. They also work closely with the stakeholder to solve any complex tax-associated issues. In some instances, they may usually work with the chief officer to ensure that the organization’s financial goals are aligned with the tax responsibilities.
Below are the critical in-house tax manager duties:
- Tax managers are responsible for generating reports documenting the organization’s obligations.
- Tax managers need to work with the company leaders to develop strategies necessary for maximizing profitability.
- Tax managers need to ensure that the organization complies with the federal, state, and local tax regulations.
Tax Consulting Career Path
If tax professionals have enough experience, they can go into the business on their own. As freelancers, they can serve the individual taxpayers’ and businesses’ needs. As a result, their clients do not need to hire their own tax manager.
In a consulting role, tax managers are expected to perform the same duties and responsibilities as in-house tax professionals. In a freelance capacity, the significant difference is that the tax managers have more final decision-making powers and authority. Plus, their clients prefer them because of their established reputation and expertise.
International Tax Management Career Path
Many businesses deal with taxation, making it a global concern. That is why they need highly experienced and skilled professionals to expertly manage risks that will potentially arise associated with tax policies in different countries.
Public accounting firms and multinational corporations hire international tax managers to manage and authenticate the global tax information. Generally, they are in charge of ensuring that the company complies with the international community’s tax regulations. It is vital for the companies that conduct a business operation in different countries and individuals who earn income through foreign investments.
It is also essential for international tax managers to understand specific schemes like the information on the TOMS VAT scheme, which can significantly impact how businesses handle tax for travel and tourism services across borders.
Most of the time, international tax managers are more likely to start their tax career journey as accountants. While they are usually familiar with the modern corporation structure as well as the global financial market, they also specialize in tax planning and law.
International tax managers have a focus on the tax in the global phase. Some specialize in a single foreign country’s tax regulations, while others broadly focus on international trade law.
Below are the essential international tax manager duties:
- Manage the tax regulation compliance related to particular products, business lines, and other organization’s concerns.
- Advise company stakeholders on emergent risks and strategic tax issues associated with the international tax regulations.
- Stay up-to-date on any changes to international accounting standards and tax laws.
- Participate in the year-end analysis and reporting of the past performance, projections, and other metrics necessary for tax planning.
- Deliver value when it comes to accurate tax liabilities projection calculation, on-time report filing, and other essential things that can advance the company’s interests.
Anyone who wants to be part of an international tax management career should focus on achieving expertise and success as a tax manager before moving from general tax practices to a more advanced international taxation role.
Additionally, suppose they want to reach the tax-based promotion smoothly. In that case, they need to build credibility, build a strong relationship with the company stakeholders, enhance interpersonal and technical skills, embrace innovation and technology, and serve as a trusted and reliable advisor.
Tax Manager Salary
When it comes to tax manager compensation, the rates depend on the skill level and location. If they successfully display their ability to add value to the organization, they can expect higher wages.
According to the PayScale, a senior tax manager can earn from $95,000 to $169,000 with $128,000 average compensation. A senior international manager can earn from $111,000 to $196,000 with $154,000 average compensation.
Typically, in-house tax roles can receive cash bonuses and profit-sharing opportunities and earn an additional $40,000 as their performance-based compensation. A freelance tax consultant can set their own compensation rates. Typically, experienced tax managers charge $50 or more per hour for the services.
