It doesn’t matter where you live in the world or what business you do. Every business has to follow the tax laws of that country and submit their tax at the end of every fiscal year. For this reason, you should always be aware of the tax law of your country.
Although the tax law is different from one country to another, a few basic things remain the same in every place. Following these norms will help you a lot at the time of tax filing. It will protect you from the harassment of tax authorities and let you do business with peace of mind.
Basic tax advice for small business
- Maintain a Business Journal
It is one mistake that many small business owners do and often face trouble for not maintaining a business journal. A business journal is a record of your regular business transactions. At the time of the audit, it helps you explain where the money for business is coming from and where you have spent it.
Many people don’t know that Income tax Singapore advises every business owner to maintain a journal of their business. At the time of the audit, tax authorities might want to see the proof of business transactions. At this time, the business journal can become very helpful and save you from penalty.
- Medical Insurance
Most governments around the world see investment in health as positivity and give tax breaks to the businesses for this. So, if you want to take benefit from this tax break then you have to give your employees medical insurance.
The money you invest in your employees will give your business multiple tax benefits from the state and federal levels. You would be surprised to know that most corporate houses in the world use this strategy to earn tax breaks from the government.
- Regular Audit
If you want to know How to reduce corporate tax in Singapore then a timely audit is an essential step you need to take for your business. The auditor will recheck every business transaction and validate its approval. It will help you substantially at the time of tax filing.
All corporate companies do financial audits to make sure their financial activity is in the right order. It is one thing the same across all corporate houses. Along with checking the financial activities of these companies, a good auditor also gives them the right financial pieces of advice that help them taxes.
Whether it is a small or large business, tax is a big burden on every business. It takes away financial capabilities from the business and makes a huge dent in their profit margin. On the other hand, tax evasion is a big crime. Government can shut your business down and penalize you for this activity.
For this reason, you need to pick the right strategy. Try to appoint an auditor for your business, if it is growing rapidly. Along with financial statement checking, he will suggest you the right strategy that will save you lots of money on taxation. This way, your business can grow rapidly without making any clash with the tax department.