Lithuanian-based BPO Provider Now Offers International Tax Management Services

Lithuanian-based BPO provider now offers international tax management services

A European Commission study revealed that in 2019, the cost of fulfilling tax obligations for EU companies amounted to 1.9% of their turnover and more than doubled since 2014. Notably, since 2019, the European Union has adopted 13,000 regulations imposing various business rules. Additionally, EU member states themselves are increasingly tightening regulations for international businesses.

Consequently, these costs are likely to have risen even further.

To address this issue, the outsourcing company Baltic Assist has started offering international tax consultancy services. These services are provided by the company's specialists operating from a single location, serving clients worldwide.

A new business model

Baltic Assist has offered all its services remotely and plans to keep this model the same even with the introduction of tax consultancy services. This distinctive approach has yet to be systematically applied in this market.

"Typically, international tax consulting firms have offices in every country where they operate. We, on the other hand, collaborate with partners abroad but handle everything ourselves from a single virtual office. This allows us to act faster, address all tax-related matters, and reduce client costs.

This business model has not been used in this sector until now, and we are confident that our experience will demonstrate its success. This will bring more diversity to the tax service market, benefiting both clients and tax specialists," says Indra Burneikaitė, Head of Baltic Assist's international tax consulting department.

The company's CEO, Andžej Rynkevič, envisions that the firm will eventually meet all the business management needs of its clients. "For a long time, we have offered accounting, financial control, and other corporate financial management services. We also provide virtual assistants capable of solving various problems, as well as a human resources management team. Now, we also offer tax consultancy services. This means that the need for more than one employee in each department of medium-sized companies will significantly decrease."

Baltic Assist's international tax consulting department not only provides tax advice but also coordinates all tax-related matters within local and international corporate groups that request it. This includes optimizing group structures, organizing company formation and liquidation procedures, and addressing other tax and legal issues in any jurisdiction worldwide.

This business model has not been used in this sector until now, and we are confident that our experience will demonstrate its success.

— Indra Burneikaite, Head of International Tax Department

Services already provided in many countries

Baltic Assist reports that it already has tax projects with international companies, most of which operate in Denmark, Sweden, Germany, the UK, and the USA, as well as in countries such as Angola and the Virgin Islands. The company's main clients include international corporations or groups operating in foreign jurisdictions.
The tax team is being formed and is steadily expanding. A. Rynkevič notes that finding employees in Lithuania willing and able to work with international tax issues has not been easy. "Tax consultants usually specialize in narrow areas, but we seek broad-spectrum specialists. While this work is more interesting, flexible, and creative, few such specialists are available."

Currently, Baltic Assist employs nearly 250 staff members from Lithuania, Latvia, and Poland. The company serves over 500 businesses from Denmark, Sweden, Norway, and other countries.