Abstract:

The primary objective of an enterprise is to increase its profitability on capitals and to grow through increasing its value. Global international enterprises, acting across borders, have many possibilities of applying shared strategies to achieve this objective. Reinvested profit is one of the sources of internal financing. Common action inside a group enables implementation of a group strategy that leads to maximising group-scale profit through income tax minimisation in particular companies. The execution of a group tax strategy encompasses both factors inside a particular entity and complex activities covering a group of affiliated entities. The decision-making process takes place in the parent company. The income tax strategy is a component of an international enterprise’s corporate strategy.