Competent tax optimization helps a business to develop: the money saved on taxes can be used to hire additional specialists, purchase equipment and software, organize corporate social responsibility events.
1. Business lines distinction
Divide the business into several companies to qualify for any tax benefit set out by Tax Code. Let’s say you have an online store that requires regular development and technical support. You can register a legal entity that provides IT services, and leave the trading activities to the initial organization. The newly organized company will be eligible for tax breaks for the IT sector, which take effect from January 1, 2021.
2. Monthly payment of contributions to funds.
If your company uses a simplified income-expenditure taxation system, then expenses can include monthly payments of contributions to funds, for instance, of social insurance and pension. Please note that this rule only applies if you contribute every single month throughout the year.
3. Exemption from VAT.
You can exempt yourself from paying VAT by simply notifying the tax authority in the prescribed manner. This becomes possible when the revenue of your company for the previous 3 months had not exceeded 2 million rubles. This right is provided for in Article 145 of the Tax Code.
There are other ways to optimize, however, every case is special. Experts shall study the list and scope of operations, staffing chart and other details of your business - and only after that they can offer a suitable option.
Go for tax optimization, don’t be shy! This will allow you to grow your business. The stronger the business - especially small and medium - the stronger the economy.