How can I minimize my trade tax burden?
July 17, 2022 | 40,00 EUR | answered by Simon Schaaf
Dear Tax Advisor,
I am Erika Stamm and I run a small business in the service industry. Over the past few years, my trade tax burden has been steadily increasing, negatively impacting my financial situation. I am concerned that I may have to make even higher tax payments in the future, which could further reduce my profits.
Currently, I have some worries regarding my trade tax and am looking for ways to minimize this burden. I would like to know what legal options are available to reduce my trade tax burden. Are there any tax planning opportunities that I could take advantage of to lower my tax burden? What tax measures can I take to run my business in a tax-efficient manner?
I would greatly appreciate your expertise and guidance in this area, as I would like to gain more clarity and security regarding my tax situation. Please provide me with specific tips and recommendations on how I can effectively minimize my trade tax burden, so that my business can remain successful and profitable in the long term.
Thank you in advance for your support.
Sincerely,
Erika Stamm
Dear Mrs. Stamm,
Thank you for your inquiry regarding your trade tax burden. It is understandable that you are concerned about how the increasing tax payments could affect your financial situation and the profitability of your company. I would like to offer you some options on how to minimize your trade tax burden.
Firstly, it is important to understand that trade tax is levied on the profit of your company. Therefore, certain tax planning opportunities can help to reduce your profit and thus also lower your trade tax burden. A common way to influence profit is by optimizing operating expenses. Through targeted planning and expense control, you can reduce your tax burden.
Furthermore, there are certain tax measures you can take to lead your company in a tax-optimized manner. This includes, for example, the use of tax depreciation options to claim investments as tax-deductible. The choice of the right legal form for your company can also affect the amount of trade tax. Here, restructuring may be advisable to take advantage of tax benefits.
Another important aspect is the so-called trade tax add-back. In this case, certain income that is not directly subject to trade tax is added back to the profit. By cleverly designing your company structures and activities, you can try to minimize these add-backs.
It is advisable to seek individual advice from a tax advisor or tax expert to analyze your specific situation and find tailored solutions. A good tax advisor can help you identify and effectively use tax optimization potentials.
I hope that this information has been helpful to you and that you have gained an initial insight into the possibilities of minimizing your trade tax burden. If you have any further questions or would like a more detailed consultation, I am at your disposal.
Best regards,
Simon Schaaf, Tax Advisor
