Every entrepreneur is obliged to pay tax on the obtained income. The amount of this tax varies. Much depends on the chosen form of taxation, income obtained and the type of business. It is worth following the available forms of settlement, because the amount of liabilities depends on them, and by making the right decisions, you can save a lot.
What is the meaning of the form of taxation?
The form of taxation largely depends on the type of business, turnover, revenues, scope of activity and choice made by the taxpayer. Of course, this choice is limited by other guidelines and requirements. Therefore, within the forms available to a given taxpayer, it is worth looking for and comparing the possibilities, because it can generate very significant savings. And for business, such opportunities are extremely beneficial.
What forms of billing are available?
In terms of various forms of taxation, the entrepreneur can choose one of five options. Of course, everything depends on the conditions that must be met, and after they are met, on the decision and will of the taxpayer.
The most popular form of taxation is based on general principles. It provides for two levels of tax. It is 18% and 32%. Basically, each taxpayer is required to withhold 18% of income tax. However, once a certain threshold is exceeded, which is reviewed annually, the taxpayer must pay a tax of 32%. Importantly, after exceeding the aforementioned threshold, the taxpayer pays the tax in two amounts. Up to the threshold, he pays at the rate of 18%, and the amount of income above this value is paid at the higher rate. If the company does not earn income in a given month, it is not required to pay tax. In this form, the amount of costs incurred for running the business is also important, because the tax is calculated on the income (the income obtained by the company minus the costs, this is the value of the income).
The flat tax is the second form of taxation. It is very similar to the settlement on general terms, with the difference that there is one tax rate. The tax amount was set at 19%. This is a beneficial solution, especially for those entrepreneurs who obtain high income from their activities. Flat tax settlement allows you to avoid the need to pay a tax of 32%.
Checked-in lump sum is a very simple form of billing, which may turn out to be very beneficial in some specific conditions. In this case, the taxpayer calculates his liability on the basis of revenues, not revenues. So it is a win-win for everyone who has relatively low cost of doing business. The advantage of this solution is also low tax rates, which start from 2%. Anyone who is unable to deduct high costs, and thus prove a much lower tax base, should consider this option /
A tax card is also a very simple and interesting solution. In the case of settlements in accordance with the tax card, the taxpayer is obliged to pay the tax in a fixed amount. It is not expressed as a percentage, but in a specific amount that must be paid monthly. This is a good solution when the entrepreneur achieves high profits and the company’s situation is stable. This form of settlement implies an obligation to pay tax regardless of whether the company has shown income in a given month or not.
You can see how diverse are the possibilities of settling one’s obligations towards the tax authorities. It is worth knowing them, it is worth getting acquainted with them and checking which ones are available in the situation of a given company. Perhaps resigning from some relief will ultimately turn out to be a chance for much greater savings, and this is already a worthwhile action.