The term “business tax planning” has been used by many and quite frequently but it has never been quite well understood. In this particular post, a deliberate attempt has been made to ensure that there is such a clear understanding of all about business tax planning, the significance it has on your business and how this can actually save your business and make it survive. The first quest we will seek to answer is that of the definition of business tax planning. In a general sense, tax planning can be defined as that set of activities that are taken so as to check on the tax liabilities so as to ensure that all the available allowances, deductions, exemptions and exclusions all work in such a fashion so harmonious as to ensure that they reduce the overall tax bill a company is due to pay.
As can be seen from the above, tax planning happens to be so important with respect to the fact that they will help a business achieve its financial and business targets. Both small and large businesses have tax responsibilities and as such tax planning happens to be important for either and benefits them equally. Corporate tax planning will help a business lower the amount of taxable income. Courtesy to tax planning as a business strategy, a business will as well be able to lower their corporate tax rate. Over and above all these is the fact that corporate and personal income tax planning as well helps a business or an individual take the most advantage of the available tax reliefs and credits availed to them and as well they will have a better control of when they will have their taxes paid. The laws on taxes and allowances often get changing and as such it is advisable that one has such regular reviews so as to keep themselves abreast and appraised on the new developments.
Getting to business tax planning strategies, you need to be aware of the fact that there are a number of strategies and approaches that may be employed. This is precisely where the input of a tax expert will come in handy and as such help you save tax.
There are the Capital Gains Taxes. These are basically the taxes that are levied on the gains that an entity makes from the sale or disposal of an asset or investment of some kind. Making plans for the capital gains taxes, some of the factors that you need to consider are such as who you will be selling the asset to and the particular kind of asset that you will be disposing.