Every year countless individuals and businesses go through the same exercise. They submit their relevant tax forms, documents, and returns with very little forethought… just to repeat the process in six months or a year down the line.
And to many it may seem straightforward: pay your tax, and get it out the way.
And that’s where many lose out on the financial benefits of thorough tax planning.
Let’s take the example of Company ABC, which only does the basics. They have an annual turnover of R8 000 000 and have absolutely no tax planning in place. Their net profit margin is 15% and thus accumulate R1 200 000 in taxable income over the tax year.
They end up paying R240 289 in taxes. That’s a lot!
What they don’t realise is that they can lower their tax burden in a few ways: Claiming tax-deductible expenses Restructuring their company Lowering their overall tax burden Taking advantage of numerous tax incentives Considering dividends income Making use of tax relief or government grants Keeping that in mind, Company ABC could be saving tens of thousands of rands every year by just being a little smarter with their tax planning!
With some time to spare before the next tax deadline, why not speak to one of our VHA Accounting Solutions tax specialists who know exactly how you can steer more of your capital into avenues that benefit you through a tax-savvy strategy?
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This is a general information sheet and should not be used or relied upon as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE)