April 19, 2024

Business Bib

Business & Finance Blog

The Right Tax for the Best Business

3 min read

In business terms, the creation of a company is due to the generation of wealth and positive conditions for its employees; But, in order to prosper, it has to comply with the law; The problem is when bad practices are incurred such as tax evasion and the hackneyed “he who does not trade does not advance”, is this phrase familiar to you?

  • There is a wrong view regarding the payment of taxes, as many taxpayers consider that they should not pay them due to the mismanagement of resources at the government level or they believe that paying taxes is a very complex task, but that is not true.
  • A year, companies must comply with more than 80 procedures related to paying taxes, according to the consultancy IDC.
  • Their first tax obligation is to register with the Ministry of Finance to establish themselves, then approximately 7 more per month follow, although the number varies if they are individuals with business activity or legal entities.

Each month, a company must submit the declaration of Income Tax  ISR) , Value Added Tax (VAT) , and the Business Flat Tax ( IETU ) , declaration of VAT and ISR withholdings , and the Information Declaration Operations with Third Parties (DIOT) in addition to a local tax return, such as payroll. And annually, the VAT and ISR returns and the annual multiple informative return. The use of the tax preparation app is important for these kinds of works.

To have a better handling of taxes, we recommend the following:

  1. Each time you collect an invoice, separate the VAT, whether you deposit it in another account or are very disciplined and keep it in cash. Remember that this tax is not yours, that will help you not to use this resource, as indicated by CP José Cruz, collaborator of the PPKRUZ & Business office.
  2. Once you have separated the VAT, pay with the remaining money your services or debts with creditors, so you will only spend what you have and, in the best of cases, if you leave with VAT in favor, it is something that you saved.
  3. Check with your accountant about everything that you can deduct for your economic activity.
  4. Always ask for an invoice on any product or service for your business, it serves to deduct as much as possible and that you do not go for informality because it is a non-verifiable expense that affects you in VAT and ISR.
  • Separate personal accounts from those corresponding to the company. If possible, join electronic banking, so you will know how you can better manage your money.
  • Acquire a software to record all your fiscal and administrative activities.

 

For the Tax Administration Service (SAT), tax education is seen as a set of values ​​that are manifested in the fulfillment of tax duties, it is a matter of personal ethics, respect for the law, citizen responsibility and social solidarity of the taxpayers; Also, keep in mind that not filing your taxes or avoiding the treasury could become a big problem, so don’t risk it.