Tax planning is of paramount importance for maintaining the existence of companies. Considering the different types of Taxes for small businesses, the high tax burden has represented a significant portion of the Companies’ results, which interferes in their economic results. The current crisis experienced globally has affected micro and small companies to a lesser extent. To improve the mortality rates of these companies, actions are needed that instruct small companies to become qualified and structured.
Tax management is effective
The biggest difficulty for those who open a micro or small business is not only the tax burden, but also the lack of knowledge of it. Most of the time, the emerging entrepreneur is not aware of fiscal responsibility, and when faced with it, he usually loses control of the situation. It is known that thousands of companies are constituted annually. However, most of them are closed even before completing one year of existence.
Tax planning is a set of acts and legal systems, which aim to reduce the incidence of taxes, where the taxpayer can structure his business in a less costly way, seeking to reduce the costs of his enterprise and taxes. For good tax planning, countless decisions must be made, so that all the steps to be taken during the year must be outlined and combined with the current legislation. This becomes even more essential, considering the current global scenario, where planning is essential to obtain success, or simply for the survival of companies.
With the high mortality rate of Micro and Small Enterprises, it is observed that one of the main causes is the lack of a reliable Tax Planning. The reality is that all Companies, both Micro and Small Companies, as well as Large Companies, stunned by the existing tax burden, prove the need to adopt legal procedures that offer concrete results in reducing the National Tax Cost. Tax Planning is not fiction or mere fads. It daily closes the doors of countless companies, un-employing thousands of people and hindering / hindering the country’s economic development. It is, yes, reality, and more than that, an imperative need and a question of survival for companies.
Advantages of tax planning
Tax planning is an essential tool for micro and small businesses to develop and achieve stability, since the main function of tax planning is the reduction of taxes paid, and these represent a large part of the company’s revenue. Tax planning aims to protect the economic activities of companies, knowing the possible valid alternatives, by legal means, that make it possible to reduce the amount of taxes paid. It points the way to avoid incidence, reduce the tax burden or postpone the tax burden. Reliable accounting information, planning and preparation to face tax issues are fundamental aspects to keep the company in a competitive market and to guarantee business continuity and growth.