Tax planning is the process through which a financial plan is analyzed or simply a situation from a tax angle. The main goal of tax planning is to ensure that there is tax efficiency. In aid with using a tax plan, investors are assured that all elements of the financial plan work harmoniously with high tax efficiency. For any financial plan to be successful, you must involve tax planning because of its significance. Through the reduction of tax liability and increase of the ability to contribute towards retirement plans, you can achieve success easily.
A tax plan is made up of various considerations. Some of these considerations include the timing of the income; planning, size, and purchase timing are related to other types of expenditures. Again, chosen investments and other retirement plans should be congruent with the tax filing status and also the deductions to ensure the possible outcome is favorable.
What you need to know about Tax Planning
What is the importance of Tax Planning?
Most people use tax plans to help their businesses achieve the set financial and business objectives. These benefits apply both in large and small business enterprises. The important role played by planning is:
- Planning reduces the tax rate.
- Planning helps in maximizing the tax relief or, rather, any tax credits available.
- Tax planning helps in lowering the amount of taxable income.
- Once you have paid all your taxes, you get full control of your enterprise.
It is good to note that different laws are always evolving, and those in existence are also changing. Therefore, there is a need for you to carry out regular reviews. Additionally, there are several types of business tax planning techniques. Below are a few areas where an advisor can benefit you and help you make greater savings through taxation.
What are the classifications of tax planning?
This is a type of plan done at the beginning and towards the end month of the fiscal year.
This is the type of planning that falls under the laws laid out.
This is a tax planning type that has a specified objective.
Types of Tax Planning Techniques
Speaking of this type of tax, this is a large cost to highly benefiting companies. However, there is a potential for both small and large businesses to retain more profit or draft more profits from other entities that are connected to corporate tax planning.
Corporate Tax Planning Strategies
- Inclusion of capital allowances
- Carrying forward costs
- Deferment of profits or income
When you plan for capital gains tax (CGT), it means that you are taking a lot of issues into account. Such problems include the product under sale and to whom the product is sold. Here at RE Donica & Associates, we have tax planners who can do the calculations for you. The planners will also tell you the type of assets on exemption or what assets you need to include.
It doesn’t matter whether you are doing your business overseas or planning to live in your home country, or migrating into a new country to focus on matters related to business; international tax planning can play a significant role in helping you save non-US tax not to forget the US tax.
International Tax Planning Strategies
- Foreign tax credits
- Proper timing of tax bills
- Evasion of double taxation
- Opting for tax deferral chances
Assuming that you expect to have a significant profit in your business enterprise this year, then it could help if you drew out a considerable dividend. At RE Donica & Associates, we have tax consultants who will advise you on the best tax-efficient way to pay both you and your employees.
Paying this type of tax, also known as IHT, upon your death, the tax may minimize your estate's amount that ends on being inherited by your family members. There are incredible inheritance tax opportunities that involve your house, and they include:
- Property gifting
- Insurance and remortgaging options
- There is also a likelihood of using strategies that involve pension funds
Tax planning is not only dedicated to vast business enterprises. There is also a chance for private individuals to retain their assets by getting involved in careful tax planning. The strategies that one can employ for successful individual planning include:
- Income tax
- Giving gifts to children
- Offering gifts to your family members
Why work with us?
At RE Donica & Associates, we offer taxation and financial solutions to chartered accountants, individuals, organizations, and businesses. We have a vast happy client base, experienced staff members with the knowledge needed to satisfy your tax needs.
You can feel free to contact us and help you make your online filing income tax returns. All you need to do is to upload your tax returns form and generate your acknowledgment number online. In case you are wondering about the areas that you can file your returns, some of these areas include your house property, salary, capital gains, income from your profession, and business, among other sources.
Additionally, at RE Donica & Associates, we can help you file TDS returns, generate your online return file, use the best tax calculator software, claim your HRA, confirm the refund status and help you draft the rent receipts necessary for income tax filing.
Our experts can also get GST ready by utilizing the best software and certification course. Our tax experts use this software to help you simply manage your invoices and returns.
In case you want to save taxes, opt for no other tax experts other than RE Donica & Associates. We have experts who will suggest the best funds and will help you generate high returns through direct investment or via the SIP.
We Want To Hear From You!
Our favorite part of the job is meeting our clients. Our passion is delivering stellar tax preparation and planning for individuals and businesses. If you’ve got tax questions, we’d love to hear from you!