Whether Georgia companies expanding overseas or foreign-based entities coming to the state, Aprio LLP’s clients appreciate the firm’s breadth of expertise and multicultural environment that set it apart from other international tax advisories, says Olga Bardina, the firm’s tax engagement director.
Atlanta-based Aprio serves more than 3,000 multinational clients worldwide, offering tax advice for both inbound (to the United States) and outbound (from the U.S.) international business expansion.
Aprio was recognized as the fastest-growing firm in the United States by Accounting Today in March 2023. It ranked 26th on the publication’s Top 100 Firms list and is the largest firm headquartered in the Southeast.
These accolades are due, in part, to what Ms. Bardina notes as Aprio’s distinct character as a truly international firm, where consultants speak more than 60 different languages. The firm emphasizes the role of cultural connection in building strong client relationships, she asserts.
“When working with international clients, I think having culture and background in common helps with building relationships and not just being a face on Zoom or an email address that they reach out to,” says Ms. Bardina, who speaks fluent Russian. “Having cultural references definitely helps me build rapport and trust with my clients.”
This rapport proves invaluable for Ms. Bardina when assisting international companies – especially those from Europe – to locate in Georgia or elsewhere in the U.S. Her clients include companies specializing in technology, manufacturing and distribution and financial services.
Georgia has great tax incentives for international manufacturers, she says, but entities in financial technology or other software that rely on human, rather than physical, capital face the fewest tax barriers to opening operations here.
Reflecting on Atlanta’s burgeoning fintech scene, Ms. Bardina underscores the city’s exponential growth as a hub for innovative startups with backing from a variety of international investors.
The business is risky but can be lucrative if the tax structure is set up properly, she asserts, highlighting one client that offers testing services for online products; it has grown from a small entity into six consolidated companies and continues to double its revenue each year.
When advising U.S. clients on overseas expansion, Ms. Bardina and her team connect them with Aprio affiliates in each country to keep abreast of local taxation requirements. She encourages these clients to evaluate more than just the value-added tax (VAT) implications – which don’t exist in the U.S.
Clients may have to reconsider their company structure, how the entity will be owned and, if they will need to pay dividends or interest, what the withholding rates on those payments will be, Ms. Bardina notes. Ultimately, she advises on the best overall structure to reduce their company-wide tax rate, using tax treaties or other tax planning strategies to minimize their tax exposure.
“Clients may not be aware of all the specifics, but that’s where we come in. We can advise on whether it makes sense to form a company in a certain location or move to a different country, according to tax rates,” she says. “It’s actually very exciting. I would just say be very cautious before making that plunge.”
Aprio’s expert advising is evidenced by its clients’ success stories. Ms. Bardina points to a notable case where Aprio’s advice on leveraging foreign-derived intangible income (FDII) deductions resulted in substantial tax savings for a client. She discovered that the company’s calculations did not include all accounts that would qualify for an FDII deduction – those that provide goods or services to recipients outside of the U.S. By amending the company’s tax returns, Ms. Bardina and the Aprio international team were able to reduce its tax rate from 21 percent to 13 percent on that foreign sales income.
“The client was obviously thrilled. That was one success story where we could actually see a huge benefit going back into our client’s pockets,” she says.
These types of victories are the result of teamwork based on mutual respect and understanding, Ms. Bardina asserts. She says that Aprio’s mix of consultants from different backgrounds, cultures and upbringings creates an environment of collaboration without prejudices, where all are treated equally and with respect and form a “very vibrant culture.”
This culture is one reason Ms. Bardina has stayed with Aprio for more than 16 years. The firm’s innovative and fast-moving environment, combining compliance and advisory consulting services, are other reasons.
“We are always innovating, trying something new, expanding. I like what I do, and I’m really excited about my day-to-day work,” she asserts.
Editor’s note: This sponsored article was produced on behalf of Aprio as part of the firm’s partnership with Global Atlanta. Film credit: Steve Toutoute, Aprio LLP
