How can I minimize my corporate tax burden?
May 18, 2023 | 40,00 EUR | answered by Benjamin Hohenadel
Dear Tax Consultant,
My name is Jan Neumann and I run a medium-sized company in the automotive industry. In recent years, our profits have been steadily increasing, which is of course very pleasing. However, this has also led to our corporate tax burden continuously growing. This tax burden is increasingly weighing on our finances and we would like to take measures to minimize it.
Currently, we are paying a high percentage of our profits as corporate tax, which is financially burdensome for us. We would like to know what options are available to reduce our corporate tax burden without violating applicable laws. We are aware that there are various legal structuring options to optimize taxes, but we are unsure which ones are suitable for us.
Our goal is to optimize our tax burden and thus create more financial leeway for investments and further development of our company. Therefore, we are seeking professional advice and support to find the best possible solutions that meet our individual needs.
We would appreciate your expertise and recommendations on how we can minimize our corporate tax burden to remain successful and competitive in the long term.
Thank you in advance for your help.
Best regards,
Jan Neumann
Dear Mr. Neumann,
Thank you for your inquiry and your trust in my expertise as a tax advisor in the area of corporate tax. I am pleased to hear that your company has been successful in recent years and has been able to generate profits. It is understandable that you are now considering the tax burden and looking for ways to reduce your corporate tax burden without violating applicable law.
There are indeed various legal options for optimizing the corporate tax burden. One possibility is the use of tax depreciation options, such as the creation of provisions or the activation of hidden reserves. Optimizing the company structure can also help minimize the tax burden. A restructuring or transformation of the company may be beneficial to take advantage of tax benefits.
Furthermore, tax incentives and subsidies can also be utilized to reduce the corporate tax burden. It is important to inform yourself about all possibilities and requirements in order to find the best solution for your company.
Another important aspect in optimizing the corporate tax burden is the careful examination of the tax situation and the creation of a tailored tax plan. Tax exemptions and special regulations can also be used to minimize the tax burden.
It is advisable to seek advice from an experienced tax advisor who is familiar with the tax specifics in the automotive industry and can develop individual solutions for your company. Together, we can analyze your tax situation, identify tax optimization options, and create a customized tax plan to minimize your corporate tax burden.
I am happy to answer any further questions and look forward to assisting you in optimizing your corporate tax burden to remain successful and competitive in the long term.
Best regards,
Benjamin Hohenadel
