What the Income tax Consultant Watsonreally Does for Clean Submission

To pay less taxes in a legal way it is necessary to reduce the taxable income, since on this we calculate the taxes and contributions to be paid. Monitoring the trend of your income during the year, through periodic accounting situations, represents the best strategy to contain taxes at the end of the year. To pay less taxes, therefore, professionals with VAT number need a guide that allows them to orient themselves in the pitfalls present in the Italian tax authorities. The Income tax Consultant Watson is the perfect one in this matter.

To be able to contain the tax burden, there are various methods, the most important 10 below:

Knowing How To Recognize The Main Deductible And Deductible Charges: deductions are the tax burdens that reduce income before calculating the tax to be paid. Deductions instead represent those charges that are deducted directly from taxes, thus reducing the amount to be paid. It is mandatory to keep all documents used to certify the expenses incurred. Each document, which must not be attached to the tax return, must bear the tax code or VAT number and must be kept in the original until December 31 of the fourth year following the presentation of the form.

·        professional books and magazines

·        stationery, consumables and stamps

·        expenses for employees and occasional self-employment services

·        utilities registered to the professional firm

·        capital goods for the exercise of the activity

The Main Costs Are Partially Deductible Instead:

·        Lease of a building used as an office and at the same time at home, the costs of which are 50% deductible.

·        Car maintenance and fuel costs, deductible at 20%.

·        Fixed or mobile telephony costs, 80% deductible.

·        Expenses for hotels and restaurants, 75% deductible provided they do not exceed 2% of the remuneration received.

·        Representation expenses, deductible up to the limit of 1% of the remuneration received.

Reduce The Profit By Publicity Or Sponsorship Contracts: if the accounting situation in November shows a substantial positive result, it is advisable to invest in advertising which, representing a deductible cost, reduces the profit and perhaps allows you to subtract a slice of the market to competitors.

Taxation Returns at The Right Level

Tax time is back. Now is the time to collect your documents and prepare your tax return. As a self-employed worker, the deadline for submitting your return is June 17th, but be careful! If you owe taxes, the balance is due by April 30 at the latest. Interest begins to run from May 1st. Let's start with four last-minute tax tips for the self-employed.

Be organized

In addition to the usual documents, such as child care receipts, tuition and other statements, self-employed individuals also need information about their business. To make tax preparation easier, start by putting together everything you need before you start. For the proper Taxation Return Preparation In Australia service this is important.

Your personal information, that of your spouse and dependents

You will need the Social Insurance Number, date of birth, and other information, such as net income, to claim certain credits for your family.

Leaflets and receipts that are not related to the business. If you have a regular job, find your T4 slip. If you pay childcare fees to work outside or to work for your business, add up your total receipts for the year. Medical expenses and other expenses that we tend to forget. Contact your dentist, pharmacist or other health professional and ask them for an annual statement of last year's fees for all members of your family.

·       Last year's statement. There is nothing better than basing ourselves on last year's statement to prepare this year's statement.

·       Company related information. Calculate all your income. Count your expenses by categories.

·       If you paid installments, consider these amounts as well.

·       If you are registered for the GST and HST, you will need your Business Number and a copy of your GST / HST return.

·       Prepare your GST / HST return before your tax return. You will need the amounts from the GST / HST return to prepare your tax return.

Find out what you can deduce

This advice is particularly important for new registrants. Essentially, any reasonable expenses incurred for business purposes can be deducted when you file your taxes. The complete list of eligible expenses can be found on the website. For the essential Taxation Return Preparation In Australia this is important.

No Complication for the Taxation Return Preparation Watson Service

In the context of his business creation, the entrepreneur is faced with several choices, including that relating to the tax system for profits. As we will see, the choice between the IR and the IS is correlated with the choice of legal status, each with a basic tax regime and option options that are unique to them. The forecast and the support of a professional are necessary to choose effectively.

Choice of IR or IS tax regime

There are two ways of taxing the possible profits for a company: the IR or the IS . When starting a business, the entrepreneur must choose between one of these two tax systems (provided that the chosen status leaves him the choice). For the proper Taxation Return Preparation Watson this happens to be effective.

IR taxation results in direct taxation of profits on behalf of the entrepreneur or on behalf of each partner in the event of a partnership.

•        On the other hand, the choice of the IS makes the imposition of profits directly on the company. The entrepreneur or the partners are personally taxed on the remuneration and dividends they receive

Choice of tax system: the IR (income tax)

•   When the business is subject to income tax, the taxation applies directly to the entrepreneur and / or the partners. The company is not subject to any tax burden. Profits earned through the company are taxed in the category of the activity carried out: BIC, BNC or agricultural profits.

•   The choice of Taxation Return Preparation Watson at the IR allows, for reduced activities, to take advantage of ultra-simplified tax regimes: micro-BIC, micro-BNC or auto-entrepreneur status.

Choice of the tax system: the IS (corporation tax)

When the company is subject to the IS, the taxation of the profits is applied directly to the name of the company. The IS is calculated at the normal rate but a reduced rate of 15% on the first 38,120 euros of profits is possible under conditions. In this configuration, the entrepreneur or the partners are personally liable to the IR only on the remunerations and dividends they receive.