Legal advice on business taxation and tax law
Taxation issues are an important part of doing business and regulate the system of occurrence, change and termination of the obligation to pay taxes, as well as tax control and a number of other issues.
At the beginning of the formation of any business project, an entrepreneur needs to determine the taxation system that he will use when doing business. At the same time, depending on the desire of the entrepreneur or the need in accordance with the requirements of the legislation, the taxation system can be changed in the course of doing business. The choice of taxation system depends, as a rule, on the type of organizational structure of economic activity, on the type of services provided, work performed or goods sold. In matters of taxation, it is important for an entrepreneur to understand not only at the start of a business project, but in the process of entrepreneurial activity. This is due to the fact that it can change:
- taxation regime (change of legislation);
- type of entrepreneurial activity (change of business niche);
- type of organizational structure of the business, etc.
To choose a taxation system, it is important for an entrepreneur to answer several questions, as a result of which a taxation system for a particular business can be chosen:
- Niche business project. In this case, it is necessary to determine what services, works, goods the entrepreneur will sell, after which the type of economic activity and OKVED are determined.
- Economic structure. The taxation system (IP, LLC, JSC) may also depend on the definition of the type of organizational structure.
- The number of employees. The taxation system and the type of business structure may also depend on the number of employees. For example, on the simplified tax system or UTII, the number of employees should not exceed 100 people, and in the case of work on the basis of a patent – 15.
- Regional peculiarities of tax regimes.
- Amount of income, etc.
In order to choose the right taxation system depending on the specific circumstances, an entrepreneur needs not only to answer important questions necessary for choosing a taxation system, but also to study the regulatory documents governing this area of activity. Taking into account all the subtleties of the legislation of the Russian Federation, sometimes it is very difficult to independently understand all the details of taxation systems. As a rule, this is due to various types of business taxation:
- general system of taxation;
- simplified taxation system;
- patent system of taxation (only for taxation of individual entrepreneurs);
- unified agricultural tax;
- tax on professional income (for individual entrepreneurs and individuals without registration of individual entrepreneurs (self-employed)).
There are plenty of options for the taxation system, each of these systems has its own characteristics and may not be suitable for all types of business activities. In this regard, before choosing a taxation system, it is important to understand the types of taxation and determine what is necessary for a particular business activity.
Further business activities depend on the correct choice of the taxation system, including documentation, reporting forms, the system of payments to budgets of various levels and non-budgetary funds, tax authorities’ audits, the level of possible liability, etc.
Advice from experienced lawyers on taxation methods allows entrepreneurs to get competent answers to their questions at any stage of entrepreneurial activity, including starting a business, changing activities, liquidating an organization, etc. In this context, it is important to note that different tax regimes carry a different tax burden on the entrepreneur and his activities. Meanwhile, it is also possible for businesses to provide for the combination of tax regimes, if this is required by the type of activity, so for one type of activity, one entrepreneur can have both patent system of taxation and simplified taxation system, combinations of combined tax regimes can be different, for example, general system of taxation and patent system of taxation. At the same time, it is impossible to combine such tax regimes as general system of taxation and unified agricultural tax, general system of taxation and simplified taxation system, unified agricultural tax. The professional income tax regime is not compatible with other types of taxation, this is due to the fact that an individual is not an individual entrepreneur.
Choosing a tax system on your own is not an easy task, but with the help of a competent lawyer, it will be easier to resolve such an issue. The practical experience and knowledge of the legislation of a qualified lawyer will help an entrepreneur make a choice on which the system of taxation of business activities, the tax burden regime, documentation, interaction with tax authorities and the level of responsibility will depend in case of violations of tax laws. At the same time, the support of entrepreneurial activities by experienced specialists allows the entrepreneur to reduce the time to resolve tax issues, not to interact with the tax authorities, reduces the risks of violation of tax laws, and also minimizes the possibility of being held liable for violations of tax laws.
- Advising clients on tax matters
- Analysis of the existing system of taxation of the client’s business
- Legal assistance in choosing a business taxation system
- Preparation of documents for changing the taxation system
- Representing the interests of the client in the tax authorities on taxation issues