In a constantly changing economic environment, it is essential for companies to effectively manage their tax burden. An intelligent tax strategy can not only reduce the financial burden, but also promote a company’s competitiveness and sustainable growth. Below, we list some important strategies that every company should be aware of and use to minimise their tax burden.
Timely and accurate tax planning
Careful planning is key to minimising tax liabilities. This includes identifying tax benefits in a timely manner and avoiding penalties for late tax filings. Businesses should conduct regular tax reviews in collaboration with an experienced tax advisor to identify savings opportunities.
Use of depreciation
Depreciation is an effective way to reduce taxable income. Companies can claim depreciation on assets, equipment and even intangible assets such as software and patents. It is important to understand the depreciation rules exactly and apply them correctly.
Tax organization of corporate structures
The choice of corporate form can have significant tax implications. For example, partnerships and corporations offer different advantages in terms of tax liability. Restructuring or converting the corporate form can therefore offer tax advantages and should be considered in light of long-term business objectives.
Grants and subsidies
Many countries offer tax incentives for certain investments, such as funding for environmentally friendly technologies or for research and development. Companies should check whether they are eligible for such incentives and how they can use them effectively in their tax returns.
Comply with international tax law
For companies that operate across borders, it is essential to comply with international tax law. Double taxation agreements and transfer pricing regulations can be used to optimise the tax burden. In this regard, advice from specialised experts is particularly important.
Tax minimisation requires a thorough understanding of the applicable laws and proactive planning. It is advisable to work with a qualified tax advisor who understands the specific needs of your business and can help you develop and implement effective tax strategies.
Investing in sound tax advice typically pays off in the long term by not only saving costs but also significantly contributing to legal certainty and the financial health of your business.
