How to prepare for real estate tax planning? Step by step guide.
Good tax planning is essential for companies in the real estate market, considering it is a very competitive and bureaucratic sector. However, it ends up being neglected or even unknown by some managers and professionals in the field. It is a severe mistake since good Steuerberatung Immobilien can avoid severe losses and be an excellent source of opportunities for your business to reduce costs and improve its results.
Even if there is no intention of breaking the law and evading taxes, the set of rules to be respected is so large that you will always be subject to fines and other penalties if you do not plan to pay taxes responsibly. So, besides relying on the advice of a professional, you must understand at least the basics of the subject.
How to prepare for real estate tax planning?
Real estate tax planning is the management of the payment of a company’s taxes and the study of ways to reduce the tax burden levied on it legally. Just as an administrator manages inventory, sales, human resources and other areas, compliance with their tax obligations must also be handled in an organized manner. Now that you understand the importance of real estate tax planning, let’s give you some valuable tips on preparing it for your business.
Know the main types of taxation
When preparing for real estate tax planning, one of the most important steps is to understand the main types of taxation such as income tax, corporation tax, VAT, trade tax, sales tax, land tax, fire protection tax, etc. The German tax system is very complex. It is because there are more than 40 different types of tax that must be differentiated in Germany. Not to forget the countless laws about who has to pay taxes for what and in what amount. In this overview, you can find out which types of taxation there are in Germany and which are particularly relevant for companies/businesses.
Count on tools that can help
Finally, to do the best real estate tax planning, you must modernize your performance and have tools to help in this process. Among the best solutions available, we can highlight systems that help with financial control. It is an option to help manage contracts, centralize customer data, forecast revenues, and bring much greater predictability to your cash flow.
Know the risks in tax planning
Doing tax planning is something recommended for any company. But it can bring some risks, especially if you are not sure which regime to fit or make a mistake. It is essential to consider that it is a preventive action — you should not expect any problem or occurrence to generate charges. Therefore, it is worth valuing Steuerberatung Immobilien so that everything is done correctly. Everyone wants to reduce the tax impact on their company, but that’s no excuse for breaking the law. So don’t even think about fraudulent actions.
Operational tax planning
It’s the basics, the procedures established in your company so that all legal requirements are met. In other words, to comply with the correct bookkeeping of operations and payment of taxes on time, you need to include these tasks in your work routine and align them with the accounting team.
Strategic tax planning
Strategic tax planning is the classification of the company in the most convenient tax regime and the knowledge of other tax particularities, which vary according to the field of activity, capital structure, location, and model for hiring human resources and others.
Why do you need to plan?
So, to alleviate the company’s tax burden, it is possible to follow three paths –
Avoid tax incidence: Adopt procedures that prevent the occurrence of the taxable event. An example is to take advantage of a tax exemption rule from your municipality to suit the requirements.
Reduce the total amounts to be collected: After a careful analysis of the rules for each tax paid, measures are planned to reduce the rates.
Delay payment: Some actions allow postponing the tax payment without incurring fines. This tactic can be helpful when you are low on working capital and need a few more days.
Outsource tax advice
If you’ve come this far and realized that changes could be made in your company, don’t waste time and start right now. First of all, it is recommended to find a specialized professional. The larger the company and the more complex activity, the more work the tax advisor will have. So, if that’s the case, having one or more professionals working might be a good idea. For micro-enterprises, outsourcing the service to a tax consultancy firm is usually enough. Even if the work is outsourced, it is essential that you and the consultant have a direct contact channel and that you align your goals well.
Conclusion
If you think that economy is the central premise, you couldn’t be more wrong. First, you should consider legality. Whether eliminating the taxable event, reducing rates or delaying payment without penalty, all of this must be done following the law. As you could see in the post, real estate tax planning is essential and depends on a series of small actions. It is always necessary to consult with a professional Steuerberatung Immobilien.
Contrary to what many people think, tax planning is much more than just fulfilling obligations on time and recording income and expenses in spreadsheets. We are talking about planning, and it involves knowing, analyzing, studying and verifying all the existing forms of taxation that affect your business.
Also read — Vorteile von Steuerberater Österreich
