How can I as a start-up entrepreneur benefit from special tax regulations?
February 23, 2023 | 40,00 EUR | answered by Karl Albrecht
Dear tax advisor,
my name is Uwe Peters and I am planning to take the step towards self-employment as an entrepreneur in the near future. I have already done some research on taxes and tax benefits for entrepreneurs, but I am still unsure about how to take advantage of special tax regulations.
I am currently in the planning phase of my business start-up and have already developed a business concept. I am aware that as a self-employed individual, I have different tax obligations and I would like to make use of all possible opportunities to minimize my tax burden and increase my liquidity.
My concerns mainly lie in not fully understanding the tax regulations and possibly overlooking important tax benefits. I want to ensure that I do everything correctly from the beginning and avoid making any tax mistakes that could cost me dearly in the future.
Therefore, my question to you is: Could you please explain in detail what tax special regulations exist for entrepreneurs and how I, as a new entrepreneur, can benefit from them? Are there specific tax benefits that apply specifically to entrepreneurs that I should pay attention to? Which tax aspects are particularly important for me as a self-employed individual and how can I optimize my tax burden?
Thank you in advance for your support and I look forward to your expert advice.
Sincerely,
Uwe Peters
Dear Mr. Peters,
Thank you for your inquiry and your interest in the tax aspects of starting a business. It is understandable that as a prospective entrepreneur, you would like to gather all relevant information before taking the step into self-employment to avoid tax errors and benefit from possible tax advantages.
When starting your own business, there are indeed some tax special regulations that apply specifically to entrepreneurs and can help you minimize your tax burden and increase your liquidity. One of the most important points in this regard is value-added tax. As a business starter, you can take advantage of the small business regulation if your annual turnover is below a certain threshold. In this case, you are exempt from VAT and do not have to show VAT on your invoices. This can lead to a significant relief in liquidity especially at the beginning of your self-employment.
Furthermore, there is the opportunity to deduct investments in your business for tax purposes. As an entrepreneur, for example, you can benefit from the investment deduction allowance scheme, where you can deduct certain future investments for tax purposes in advance. Depreciation of acquisition costs for business assets is also an important tax aspect that you should consider in the context of your business startup.
You should also keep an eye on the regulations for income tax as a self-employed individual. For example, business expenses such as office supplies, further education, or travel to business meetings can be deducted for tax purposes. The choice of the right legal form for your business can also have tax implications, so it is advisable to consider this already in the planning phase.
To optimize your tax situation as a business starter and benefit from all possible tax advantages, I recommend contacting an experienced tax advisor early on. A professional tax advisor can give you individual advice tailored to your specific situation and help you optimize your tax burden.
I hope that this information has been helpful to you and I am available for further questions.
Kind regards,
Karl Albrecht, Tax Advisor
