An international tax manager is in charge of making sure that a multinational corporation follows the tax laws of each country in which it operates. Individuals work as in-house tax managers for some major corporations, while others work for accounting firms that provide tax advice to businesses on a contract basis. Aside from ensuring compliance, an international tax manager is responsible for saving money utilizing tax laws to the firm’s benefit.
A college degree in accounting is usually required of an international tax manager. Furthermore, most firms only hire licensed or certified accountants for these positions. Many firms require tax managers to have a second language and some familiarity with both domestic and international tax laws and treaties due to the nature of their work.
Multinational corporations frequently manufacture and sell goods in a variety of countries. In many cases, a company may be required to pay corporate income tax in multiple countries because taxes may be due in any country where the company operates. To avoid fines or other penalties, an international tax manager must calculate the firm’s overall tax liability and ensure that taxes are paid in full. Because tax laws change frequently, the tax manager must stay current on legislative developments and notify senior management when tax brackets are raised or lowered.
Many countries enter into international tax treaties to facilitate cross-border trade, allowing multinational corporations to avoid double taxation on profits. The international tax manager must advise the company’s directors on how to best deploy the company’s assets in order to reduce the company’s tax liability. A company may benefit in some cases closing a manufacturing department in one country and opening a new plant in a country with more business-friendly tax laws. Many countries have tiered tax brackets, which means that if a company’s profits exceed a certain threshold, the tax rate rises. As a result, a tax manager may advise senior management to reduce production in one country while increasing operations in another to avoid tax increases.
An international tax manager is usually in charge of a taxation or accounting department, and all of the employees and administrators in that department are his or her direct reports. As a result, the manager has the power to assign accountants to specific projects. In addition, the manager is in charge of hiring, training, and terminating employees.