Richard Boykin Aholding company is a company formed to hold investments in subsidiaries. Although it may perform management, financing, or licensing functions for its affiliates, a holding company typically does not engage in its own operating business. Many countries, mostly in Europe, have established holding company regimes that may provide significant tax benefits to multinational corporations, including a reduction or elimination of withholding taxes on distributions, and the reduction or elimination of income tax and tax on capital gains at the holding company level. In addition, most holding companies are formed in jurisdictions with a wide network of income tax treaties, which may provide additional tax benefits.
April 04 2005
