How can I save taxes as a company?
August 17, 2022 | 50,00 EUR | answered by Siegfried Strauss
Dear Tax Advisor,
As the managing director of a medium-sized company, I am faced with the challenge of optimizing our tax burden and saving taxes. Currently, we are paying high corporate taxes and are looking for ways to reduce them.
Our company generates a solid profit, but a large part of it is diminished by the tax burden. We would like to know what legal options are available to minimize our tax burden and increase our profits.
We have already considered various tax measures such as setting up reserves or using tax depreciation, but we are unsure if these measures are suitable for our company and if there are other tax optimization strategies that we have not considered.
We are looking for specific recommendations and practical tips on how we can save taxes as a company without violating tax laws. We want to ensure that we fully utilize all tax planning opportunities and can permanently reduce our tax burden.
Could you please advise us on the strategic approaches and measures we can take as a company to optimize our tax burden and save taxes? We look forward to your expertise and personalized advice.
Thank you in advance.
Sincerely,
Fred Kockel
Dear Mr. Kockel,
Thank you for your inquiry and interest in tax optimization possibilities for your company. As the managing director of a medium-sized company, it is important to minimize the tax burden and increase profits. In this regard, I would like to provide you with some concrete recommendations and practical tips to optimize your corporate tax burden.
Firstly, it is important to mention that creating reserves and utilizing tax depreciations are good ways to reduce the tax burden. Reserves can be used to shift profits and thus decrease the tax burden. Tax depreciations, on the other hand, allow for investments to be claimed for tax purposes and thereby reduce the tax burden.
Another approach to optimize your tax burden is to make use of tax incentives and benefits. This includes, for example, investment allowances or tax advantages for specific industries or regions. It is therefore worthwhile to examine the possibilities of utilizing such incentives and take advantage of them if necessary.
Furthermore, tax-optimized financing structures can also help minimize the tax burden. It may be beneficial to structure the company's financing in a way that leverages tax benefits. This includes optimizing interest rates or utilizing tax-advantaged financing instruments.
I also recommend regularly reviewing and potentially adjusting your tax strategy. Changes in tax laws or new tax planning opportunities can impact your tax burden, so it is important to keep abreast of these developments.
Finally, I would like to emphasize the importance of always complying with applicable tax laws and not using tax schemes that violate laws. It is advisable to seek advice from an experienced tax advisor to ensure that all tax possibilities are fully utilized without taking on legal risks.
I hope that these tips and recommendations have been helpful, and I am available for any further questions you may have. Thank you for your trust and inquiry.
Best regards,
Siegfried Strauss
