When we talk about planning in the business world, we often associate it with financial issues, that is, analyzing assets and their financing, investments, savings, what our objectives are, etc., but many times we do not think that Good tax planning is necessary. Minimizing the fiscal cost within the current legality, must mean paying our taxes efficiently and fairly, thus achieving significant savings for our pockets.
We must not confuse tax planning, always acting within the legal framework, with tax evasion, with which the only aim is to avoid paying taxes, usually doing so illegally.
Keys to make a correct tax planning
One of the keys to doing it correctly is to do it at the beginning of the year, or, even better, before finishing it, for the next one, so we can have a greater perspective and a better margin of manoeuvre. But the truth is that on too many occasions this programming is not done and we remember it, when the tax payments arrive, such as the income tax return or corporate tax. It is on those dates that it is remembered that it was not done.
We give you some keys to solve it and do it correctly:
- Analyze the context. This is key to be able to make a correct planning. It is true that we will have to modify the data and our forecasts, even more so after these two convulsive years with the pandemic and war included, but if you have already done the initial analysis, it will be easier to calculate the taxes that we owe and/or can pay and what do to reduce the tax burden.
- Do financial planning. Every business must have controlled the flow of money that enters and goes out, but it must also have a forecast of what it is going to be during the year to be able to take measures if it turns out that more goes out than comes in. With this vision we will be able to make an estimate of the taxes that will have to be paid and thus plan where to invest in order to be able, if possible, to compensate.
- Be clear about the fiscal calendar. This is essential to know when the statements will have to be made, when and how much will have to be paid, when it is better to make the investments in case we can make a deduction that will lead to some savings... All companies should keep this calendar very present. In addition, that also allows us to know when we can defer payments, write down the days that we will make them and thus not forget any date and have control of that outflow of money.
Why is tax planning important?
Although planning sounds like visualizing future events, it is essential to know where the company should go and, above all, the strategies that we will follow to achieve our goals.
Good business planning must take into account all aspects of the business, including taxation. We need to know when we will have to pay taxes, if we can postpone them and if it is done, when we are going to pay those amounts. All this influences the liquidity and the state of our company. If we do not take it into account, we can find ourselves in trouble and have the occasional financial scare at any given time.
Knowing in advance the taxes that we will pay will help us to be able to adjust the strategy that we have planned and rectify, modify or adjust the movements that are necessary.
At Capellas we help you do it
Tax planning can be done by yourself, with your team or with the help of trusted tax advisors. This part is important because many legal aspects must be taken into account, as well as knowing precisely the dates of your tax obligations, which is why we recommend that you rely on experts in the field.
At Capellas we can help you carry out this tax planning. We carry out, first of all, a complete study of your company to know what can be done and what will be the forecast of taxes that may affect you.