We know that high tax burden has hurt many businesses. Its high rates make the company financially limited to make new investments, because the more the business grows, the more its taxes also grow. So it is necessary that you learn to pay fewer taxes – without evading.
Do tax planning
The first step for you to be able to pay fewer taxes is to schedule yourself. Make a tax planning of your company, taking into account the following aspects:
- The expectation of the project’s gross revenue or revenue;
- Your operating and personnel expenses;
- Your profit margin;
- The company’s history (in order to check if there was any undue tax payment).
This information also allows your company to carry out its activities in a safer way and thus generate savings for the business.
Analyze tax incentives
Before the end of the fiscal year, it is interesting that you analyze what are the existing tax incentives that can benefit your company. The tax incentive aims to bring more economic development to a given region and, for that to happen, the municipalities offer a reduction in taxes. However, to achieve this incentive, you need to do something that contributes to the development of the region or support social responsibility programs.
Consider splitting the company
Another interesting option to be considered is the division of your company. To do this, rethink your business structure, dividing each sector, so that each one is responsible for its own production. If you have an automotive center, for example, where car sales and vehicle maintenance are carried out, you can divide it into two. One in the sales segments itself, and another in the service provision segment. In this way, each division of the company can choose the tax regime that becomes more interesting for them – which will help to reduce their tax burden.
Watch out for tax recoveries
Roughly speaking, tax recovery consists of recovering taxes, contributions and fees that are unduly paid to the Government. Therefore, to ensure this recovery of Taxes as an independent contractor, it is necessary that the company be aware of the credits to which it is entitled. It is necessary that you make a survey of all taxes paid in error, correcting them monetarily. After this survey, you will be required to enter an administrative – or, ultimately, judicial – procedure to effect the recovery of the tax.
Given all this, in order to reduce your tax costs, it is essential that you have an efficient and reliable accountant. It is this professional who has extensive knowledge in the area, and can help you bring a significant tax reduction when making your income tax return.