Everyone who is just starting their own business has few resources. Therefore, to successfully develop their business, they are forced to save wherever possible. Since taxes eat up a significant part of profits, tax optimization, carried out in strict compliance with existing legislation, will help to avoid unnecessary expenses.
What is included in tax optimization?
Tax optimization involves the use of all legal methods to minimize tax payments and avoid the accrual of fines by the fiscal authorities. The purpose of tax optimization is not to reduce any taxes, but to prevent overpayment of taxes where this can be avoided, taking into account the peculiarities of the economic and financial activities of the enterprise.
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For tax optimization, the state provides many opportunities, such as tax incentives, a large number of different tax rates, as well as the possibility of different interpretations of some laws, which introduces some ambiguity and at the same time gives a legal opportunity to slightly reduce tax payments. At the same time, it should be taken into account that an enterprise that has reduced its tax payments too much may attract very close attention from the authorized bodies, which is fraught with numerous inspections and additional costs.
How to make tax optimization
To minimize taxes and avoid the accrual of fines by the fiscal authorities, it is necessary:
- that tax schemes developed by your employees are reviewed by independent experts;
- take advice from specialists with a large baggage of theoretical knowledge and practical experience;
- make a comprehensive assessment of the risks associated with the use of optimization schemes, and choose the one where the ratio of risk and savings will be most acceptable for you.
Legal methods of tax optimization include:
- change of the tax subject (for tax optimization, it is possible to change the organizational and legal form of doing business to the one for which the most favorable taxation regime applies);
- change in the type of activity of the tax subject (transition to the type of activity that is taxed to a lesser extent);
- replacement of tax jurisdiction (registration of your enterprise in the territory that can provide preferential taxation);
- choice of accounting policy;
- use of all possible benefits provided by the state for business development.
Reducing tax payments requires the coordinated work of accountants and lawyers working for your company. Before implementation, the taxation scheme must undergo a comprehensive review for compliance with criteria such as reasonableness, reliability, efficiency, and compliance with the law.
Employees of the company “Capital tax consultation” can carry out high-quality tax optimization of your company. We have extensive experience in successfully minimizing taxes for enterprises of various forms of ownership. By contacting us, you can significantly increase your profits by following the competent taxation scheme developed by our specialists.