tax planning

What are the keys to tax planning to reduce the tax burden?

Experts revealed what must be taken into account to mitigate the tax effects on companies and explained the differences with evasion and avoidance. When starting a business, setting up or restructuring a company, there is no doubt that there are many aspects to take into account. The selection of the company name, the staffing, the technology to be used, the location of the establishment, even the tangle of bureaucratic procedures necessary to properly register the company, are some examples of the complex scenario they face.

However, there is something that goes beyond the size and type of business and what, practically, no one can escape: the payment of Small business taxes.

Consider the type of products sold and the value chain

The selection of what type of product companies will market is a key issue. That is why it is recommended studying the tax consequences at the time of setting up or modifying it. The payment of taxes is an axis in tax planning.

Choose the most appropriate corporate and internal structure

Specialists consider it as an important factor when forming a company, to give it an effective legal framework, which allows it to be favored with the tax exemptions and benefits that it could to have. This also serves to avoid double or multiple impositions, as a result of different tax attribution criteria in different national jurisdictions.

Consider financing through capital contributions or loans

Companies usually have legal entities from which they can finance the operations of subsidiaries in other countries. Financing can be structured through capital contributions or debt, each with its defined fiscal consequences.

Strategy of tax planning

The strategy is a plan or a guide that generates actions to reach an end and make decisions. The strategies can be seen in different perspectives, from what an organization intends to do, that is, the objectives and goals that it proposes, to what the organization finally decides to do, in other words, the pattern of responses it provides through the weather.

  • Clarity in planning – From the conception of an idea to its implementation,
  • The motivational impact – The staff in an organization is the main engine for the achievement of objectives,
  • Internal consistency – With the values ​​and organizational culture,
  • Compatibility with the environment – Knowledge of internal and external factors to a company,
  • The availability of the necessary resources – Knowing perfectly well what one has to avoid making castles in the air.
  • Know the degree of risk and applicability – For the development of a project it is essential to know the feasibility of success, as well as the ability to implement the plans outlined.

Many owners, managers or executives of companies are concerned about offering quality in their products or services or presenting excellent advertising that are important, however, they neglect an important section of the company that is essential in the functioning of the accounting area and fiscal.

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