How to reduce taxes?
The dream of every modern businessman is to save money on taxes and at the same time not to break the law. How to reduce the amount of tax, while not to become a criminal? Consider several options for action.
We take advantage of tax incentives
More recently, young entrepreneurs had the opportunity to enjoy tax breaks that would reduce the income tax. These are the so-called tax holidays, which certain types of business could use. However, this was canceled.
But do not be upset, as some types of actions that can save on the payment of tax, still remained. Sometimes, for urgent material support of a company in distress, the procedure for infusing the assets of the parent company into the capital of a small business is used. This process is not taxable and must be at least fifty percent of the total share capital.
It is necessary to take into account one "but" - the transferred money should be allocated only from the net profit. Thus, the tangible effect of frequent use of this method will not be.
True calculation of income and expenses
The remaining ways to actually reduce tax payments are based on various methods of calculating taxes. As a general rule, they are calculated as the difference between income and expenses. That is why to reduce the taxable income can be either a decrease in income or an increase in costs.
It is undesirable to use the first method, since there may be a conflict with the law. But the second way to calculate the costs that reduce the income tax, if you have a fantasy, it is quite feasible in practice. Here you can go in two ways. In the first case, it is most advisable to change capital expenditures for current ones. For example, similar in nature work that is necessary for the redevelopment and redevelopment of a building can be fixed as a major overhaul or reconstruction. In the second case, the expenses of the enterprise will be fully comparable with the expenses for the current time period. They will cause a significant decrease in the amount of taxable profits. Those costs that were allocated for the reconstruction, most often attributed to the value of the object itself, therefore, when calculating the tax, this amount will be taken into account throughout the building’s time period, which ranges from 30 to 50 years.Thus, it is best to increase the amount of tax immediately.
The second example of how to reduce taxes is as follows. The company orders a marketing company to analyze the required market segment. During the procedure for concluding a contract, this service is referred to as "conducting marketing research" or "providing marketing services." At first glance, there are no differences here. But in the first version of the wording, the amount of money will need to be broken down by expenses of two or three quarters, and in the second case, expenses can be summed up with current expenses and reduced profit. It is important to correctly calculate the expenses that reduce the income tax.
A similar result can be obtained if you acquire fixed assets through a leasing transaction. If you bought them with the help of the contract of sale, then increase the cost does not work.
There are firms that artificially increase the amount of expenses. A huge number of such operations occur in one-day firms. While signing with them a fake service agreement, a huge amount of money goes back to the customer.
Of course, this method is contrary to Russian law and therefore it is strongly not recommended to use it. Such agreements may be recognized as sham transactions.
Reduce to a minimum of VAT
Payment of VAT occurs on the basis of the calculated profit based on the amount of turnover. Reducing the amount of taxes is also against the law, but there are goods that are not taxed at all. Among them, medications, and some food and goods for children are subject to a rate of 10-20% discount. To reduce the amount of taxation, you can take as a basis for your business the trade in the above products. A full list of benefits is set out in articles 149-164 of the Tax Code of the Russian Federation.
Special mention deserves this option as an increase in the "water" tax. This option is more expedient, since it does not constitute a sham transaction and is not against the law. It occurs as follows: the company purchases goods for borrowed funds (it can be either a loan or a loan), after which the VAT that must be paid into the state’s income is calculated from the total amount of taxation, since partially VAT was paid when buying the goods.If we consider that the loan was impressive, the tax burden on the company is significantly reduced when recalculating VAT. As for the repayment of borrowed funds, then this can be done in several stages for a long time.
Exemption from payment
The dream of any businessman puzzling over how to reduce the income tax is not paying him at all. Article 145 of the Tax Code of the Russian Federation has compiled a list of persons exempted from tax payment. Such an advantage will be enjoyed by those individuals who, over the past three months, have received revenue from the sale of goods and the provision of services an amount not exceeding one million rubles. However, excisable goods are not allowed to trade during this period. Also, the amounts that are carried out at customs when importing goods are not exempt from paying taxes.
In order to exercise the right to legal exemption from VAT, it is necessary to send by mail or deliver the following documents to the tax office in person:
- a copy of the journal of invoices issued or received;
- writing from the book of sales;
- written presentation of the book on the accounting of income, expenses and business transactions;
- extract from the accounting balance.
It is necessary to submit the necessary documents within the time period specified by law - no later than the twentieth day of the month from which the entrepreneur intends to use the legal right to release. Under Russian law, you can get free from taxes for a period of not more than 12 months, and at the end of this period you can extend the exemption or refuse it. The refusal procedure also requires the provision of a full package of documents.
However, if a businessman has exceeded the amount of revenue, then the benefit to him ceases to apply. This method is the most legitimate, but using it, the entrepreneur risks losing loyal customers.
Thus, there are several completely legal ways to reduce the amount of tax and not to conflict with the law. Choose one of them and your business will bring you much more income.