Legal tax optimisation — what can your company do?

Many companies pay more tax than they need to — not because there is no room, but because the available tools are not known. This article describes the main lawful ways to reduce the tax burden.

Choice of tax form

Picking the right tax form (progressive scale, flat tax, lump-sum recorded tax or tax card) is one of the first optimisation steps. Each form has its own thresholds, rates and conditions that need to match the business profile.

Deductible costs

Properly documenting costs of running the business — from company cars to IT equipment — can materially lower the tax base. The key is correct documentation and a justified link to revenue.

Reliefs and deductions

IP Box, R&D relief, expansion relief, hiring relief — these are only some of the tools that can significantly reduce tax. It is worth reviewing availability of these instruments on a regular basis.

Planning salaries and dividends

For capital companies, planning management remuneration and dividend policy is essential to optimise the combined tax on company profit and the owners.