Tax optimization involves the development of mechanisms that help reduce the amount of taxation. The whole procedure is carried out strictly within the current legislative framework. Provided benefits, exemptions and various ways to minimize the tax by a few percents are taken into consideration.
The functions of the legal procedure
The main function of tax optimization is a significant reduction in the tax rate. In addition, it becomes possible to reduce the risk of obtaining penalties and minimize other possible risks. Competent lawyers manage to get a delay in the process of paying taxes for their clients.
Ways of tax optimization
There are several ways of tax optimization. The most common in legal practice are the following ones:
1. By type of taxation (VAT is taken into consideration, as well as taxes on profits or property, on personal income, UST (i.e. the single social tax), etc.).
2. Depending on the nature of the activity. Thus, the bank and the outlet methods of optimization will be totally different.
3. By type of the subject (entrepreneur, firm, small / medium / large enterprises).