How can an entrepreneur affect their own and their company’s taxation?
Effective tax planning is an important part of a company’s business strategy. By acting proactively in relation to taxation obligations, you can enhance your risk management and take advantage of opportunities that require planning. Tax planning can release your company’s resources and the expertise of professionals for your company’s growth and development!
Next, our experts provide three practical tips for an entrepreneur’s tax planning:
Choose the right company form – recognize the needs of the business and optimize your taxation
It is worth taking the time to understand and choose your company form, as, for example, the taxation of a limited liability company (“in Finnish osakeyhtiö, Oy”) and a self-employed professionals (in Finnish toiminimi) is assessed differently. The choice is influenced by several factors, such as the nature and scale of the business, ownership structure, and company growth plans, not to forget the entrepreneur’s own needs and views. Choosing the right business form can optimize costs and avoid unnecessary taxes.
Choosing a company form is a significant decision that guides the entire business and should not be made without a deep consideration. I am happy to assist in brainstorming and together we can consider what is important for your particular business in choosing a company form.
Identify and take advantage of current changes in tax legislation – utilize reliefs, but avoid pitfalls
Tax legislation is quite dynamic and constantly changing. Changing tax laws bring pitfalls that can be avoided, but also opportunities that should be seized when the time is right. Did you know, for example, that from 2023 onwards, it has been possible to make a special deduction in taxation for research and development activities related to a company’s business operations, regardless of the size of the taxpayer? Entrepreneurs also have other various deductions that should be considered in taxation.
Anticipation and timeliness are also crucial in exploiting the opportunities offered by tax legislation. Acting at the right time can prevent unnecessary taxes and tax consequences. Let an expert monitor changes in tax legislation for you and identify and realize opportunities, so you can focus on your business.
Accelerate growth with corporate restructuring – an opportunity for enhanced risk management
By rearranging a company’s operations and assets, growth and various benefits, such as operational efficiency, can be achieved. Various corporate restructuring methods, such as mergers, demergers, business transfers, or share exchanges, can rationalize or even diversify a company’s assets. In some situations, a group structure can reduce administrative costs and sometimes it is tax-efficient to consolidate the operational structure. Tax-neutral corporate restructuring is also an excellent tool for risk management!
We assist our clients in the process of implementing corporate restructuring and advise on what to consider in relation to taxation when choosing the method of implementation. Please continue to follow Tuokko’s website, where more detailed information on the prerequisites for share exchange and the benefits you can gain from it is coming.
Tuokko’s tax experts have several years of strong experience and extensive practical knowledge in tax-related assignments. We understand that each company is different, and thanks to our extensive experience, we can offer you advice that helps you advance your business in the direction you desire.
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