How can I, as an entrepreneur, plan ahead for the trade tax burden?
October 31, 2023 | 40,00 EUR | answered by Simon Schaaf
Dear tax advisor,
I am Edith Möller, owner of a medium-sized company in the textile industry. In recent years, my company has generated good profits, which is now reflected in an increasing trade tax burden. As I have to pay more trade tax year after year, I am worried about the financial burden on my company.
Currently, I am already paying a high amount of trade tax, which is having a negative impact on the liquidity of my company. I am wondering if there are ways to plan ahead and optimize the trade tax burden to financially relieve my company. Are there legal design options or strategies that I, as an entrepreneur, can use to reduce trade tax or at least better calculate it?
I am looking for specific recommendations and solutions that can help me as an entrepreneur to reduce the trade tax burden of my company and plan for the long term. What tax measures can I take to optimize the trade tax burden of my company while complying with legal requirements?
I look forward to your professional advice and thank you in advance for your support in planning ahead for my trade tax burden.
Sincerely,
Edith Möller
Dear Mrs. Möller,
Thank you for your inquiry regarding the optimization of your business tax burden as the owner of a medium-sized company in the textile industry. It is understandable that you are concerned about the increasing business tax burden, which is having a negative impact on the liquidity of your company. There are indeed various legal structuring options and strategies that can help you as an entrepreneur to reduce the business tax or at least better calculate it.
One way to optimize your business tax burden is to use investment allowances. These allow you to use a portion of your profits for tax purposes by making investments in the company. By utilizing investment allowances, you can reduce your business tax burden and at the same time invest in the future of your company.
Another approach is to shift profits to other tax-advantaged areas. For example, you can use profits tax-deductibly through clever restructuring or shifting profits to subsidiaries. However, it is important to comply with legal requirements and regulations to avoid tax risks.
Furthermore, you can also influence your company's business tax burden through optimized profit utilization. By retaining profits or using them for specific investments, you can reduce your business tax burden and improve your company's financial situation at the same time.
It is advisable to consult with an experienced tax advisor to develop an individual and tailored tax planning for your company. A tax advisor can help you take the best possible tax measures to optimize your business tax burden while complying with legal requirements.
Therefore, I recommend scheduling a personal consultation with a tax advisor to develop concrete recommendations and solutions together. Forward-looking planning of your business tax burden is crucial for the financial stability of your company.
I am available for further questions and look forward to assisting you in optimizing your business tax burden.
Best regards,
Simon Schaaf, Tax Advisor
