How can I save on business taxes?
April 6, 2024 | 40,00 EUR | answered by Isabel Möller
Dear tax consultant,
My name is Benjamin Seiler and I am the owner of a small construction business in the building industry. Over the past few years, my company has been steadily growing, which of course makes me very happy. However, I have now reached a point where the burden of business tax is becoming more and more of a concern for me.
Currently, I am paying a significant amount of business taxes and I am wondering if there are ways to reduce or even save on them. I would like to know what tax planning options are available to minimize my business tax expenses and create more financial flexibility for my company.
I am worried that the high business tax burden could potentially impact the profitability of my company in the long run, so I am looking for solutions to identify and utilize cost-saving potentials.
Can you provide me with specific tips and recommendations on how to save on business taxes? Are there legal ways to reduce the business tax burden without taking on tax risks? I would greatly appreciate your help in optimizing my tax burden and leading my company to long-term success.
Thank you in advance for your support.
Sincerely,
Benjamin Seiler
Dear Mr. Seiler,
Thank you for your inquiry regarding the trade tax burden in your craft business. It is understandable that you are concerned about the amount of your trade taxes and are looking for ways to reduce or save on them.
There are indeed various tax planning options to minimize the trade tax burden and create more financial leeway for your company. One possibility, for example, would be to use exemptions and thresholds that depend on the amount of the trade income. A smart planning could help you maximize these exemptions and thus reduce the trade tax burden.
Furthermore, you can also influence the amount of trade tax by choosing a favorable legal form for your company. Depending on the company structure and size, it may be advisable to choose a different legal form to take advantage of tax benefits.
Investing in business facilities and machinery can also have a tax-reducing effect, as these investments may lead to depreciation that reduce the trade income and thus lessen the trade tax burden.
Additionally, considering tax benefits or funding programs could help reduce the trade tax burden. It is advisable to consult a tax advisor to discuss possible options and measures to find the optimal solution for your company.
It is important to emphasize that all tax planning options should be implemented in accordance with legal regulations and without tax risks. An experienced tax advisor can support you in this and provide you with specific tips and recommendations to optimize your tax burden and lead your company to long-term success.
I hope this information is helpful to you and I am happy to assist you with any further questions.
Best regards,
Isabel Möller
