Tax Glossary Definition
Base Company – A subsidiary established in a jurisdiction with favorable tax laws to oversee certain business activities, hold investments, or receive income on behalf of a multinational group. Such entities are often designed to optimize the group’s tax position but are increasingly regulated under anti-avoidance and transfer pricing frameworks.
Example: A multinational corporation may form a subsidiary in a low-tax country to own its trademarks and license them to affiliates in other regions.
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