Tax / Taxation

Although we would like to believe that the "my company, my money" rule applies in everyday life, unfortunately this is not the case. Every company has to pay taxes in almost all countries of the world, although the differences in the variety of taxes and the level of tax rates are very significant.

The moment when our company is established, we put the money intended for this into a pocket from which we cannot freely spend on anything. In fact, whether we sell or not our profit arises, even if we pay wages to our employees, this may almost always have some kind of tax burden contribution cost.

However, it is important to state at the outset that the basic concepts of corporate taxation do not begin with individual tax schemes. The chosen one from company form depending on some accounting we are obliged to keep records. These registers and the resulting reports also provide the data for calculating the taxes and contributions to be paid. Their accurate management is essential not only because this is how we can follow the development of our company's financial situation, but also because businesses are required to do so by law.

In different countries of the world, companies pay taxes based on very different rules, but there are basic tax types that can be found almost everywhere. These main groups are listed below. 

Some of the taxes to be paid by companies are related to their turnover, others to their generated income, possibly to their assets, and they also have to pay various taxes and contributions for the employees we employ.

Traffic-related taxes bear their function in their name. This tax is added to the income and must be paid by the final consumer, but it is usually collected and paid by the companies selling the product or service. THE gross and the net price difference a turnover tax, the net price of the company income.

Businesses have to pay taxes almost everywhere their profits even after. In very simple terms, this is based on the difference between the generated income and all company cost. This is it earnings before taxes, the amount after paying the taxes, is profit after tax. The local taxes payable to the given area, calculated on a similar principle, can be linked to the profitability of the business. 

The enterprises give the owners the share, dividend they can pay from the taxed profit. In most countries, this is also subject to taxes and contribution, but this cost no longer increases the company's tax burden, but must be paid by the owner. 

It happens that some of the company's assets are also subject to some kind of central or local taxes. This could be, for example, the relatively common motor vehicle or real estate tax. 

In addition to the general corporate tax structure, simplified forms of taxation specifically tailored to the needs of small enterprises are used in many countries. The administration of these is typically simplified, and the tax rates are lower.

In most cases, however, even with the latter taxation methods, it is worth entrusting an accountant with keeping the records and preparing the returns. As an entrepreneur, you have to comply with a lot of regulations that you didn't have to deal with as an individual, and are therefore unusual and complicated. However, compliance with them is the responsibility of entrepreneurs, and mistakes can have serious financial and even legal consequences.