Tax optimization plays an important role in activities of any commercial enterprise. Tax optimization is a system of tax planning methods that help to minimize them. What is tax optimization and why do we need it?
Tax optimization methods include the use of all possible tax benefits, exemptions and other methods permitted by law.
Tax Optimization Goals
The main goal of tax optimization is to reduce tax liabilities. Competent tax optimization helps to minimize tax penalties and reduce tax risks.
Types of tax optimization
Types of tax optimization:
- by types of taxes (VAT, income tax, property tax, personal income tax, etc.);
- by type of commercial activity (for example, banks, insurance organizations, trade organizations, etc.);
- by categories of taxpayers (organizations, individual entrepreneurs, large, medium and small enterprises).
Elements of tax optimization are:
- control over the calculation of taxes and their timely payment;
- optimization of tax liabilities;
- accurate fulfillment of tax obligations;
- accounting and tax accounting, which makes it possible to obtain accurate information about commercial activities for tax planning purposes.
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