Every self-respecting company seeks to reduce its fixed expenses in order to obviously achieve a higher profit at the end of the month, as long as this does not hinder the organization’s operations. With the self- employed person, who provides services on a self- employed basis, on an occasional basis and without employment, things could not be different. And one of the effective ways to reduce spending is to save on Taxes as an independent contractor.
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Do tax planning
The first step to pay less tax, perhaps the most important is to have legal advice to do the company’s tax planning. In this planning, factors such as expected revenue and gross revenue, personnel and operating expenses, profit margin and history will be taken into account. From the analysis of these data, it is possible to define the ideal taxation regime for your business: simple national, presumed profit or real profit. Wrongly, there are entrepreneurs who believe that the simple national is always the best regime, which is not true.
Look for tax incentives
Another measure that can result from tax planning is to analyze whether the company can benefit from any tax incentive. For example, the exemption from payment offered by the federative entity responsible for the tax, the reduction of rates if a counterpart is met or even the exemption plans, such as the payroll. For this, it is necessary to first understand what taxes your company should collect for each federative entity – Union, State / Federal District and Municipality -; if any incentive is offered and what can be done by your company to fit the required conditions to enjoy the incentive.
Issue electronic invoices
In addition to reducing costs for printing, paper and document storage, the issuance of electronic invoices inhibits entry and calculation errors and, thus, avoids possible payment of a tax with an amount above the real.
Make tax payments up to date
Interest and fines due to late payments can represent a significant portion of the amounts paid as taxes. As much as the company may have periods of financial difficulty, it is essential to avoid late tax payments, as this can further accentuate the financial loss. If any mistake made has implied the payment of a tax in an amount less than what is actually due, the ideal is to anticipate the eventual notification of the Revenue and make the correction. This avoids unnecessary payments and problems with the tax authorities.
Regularize your company’s situation
Fearing the high tax burden, some small entrepreneurs end up keeping their businesses in an irregular situation and act only as an individual, as an individual taxpayer. This can be a big mistake. After all, the payment as income tax of that individual can be significantly higher than the payment of income tax for the legal entity.