How You can Count the Tax and the profit

The end of the year is a time full of festivities and various gatherings. From work commitments, year-end dinners with friends or family gatherings; the month of December and the beginning of January are dates when we plan fun and pleasant moments with our loved ones.

However, these times of rest can also be an excellent opportunity to begin planning the financial organization for the following year. Let’s remember that it is never too early to think about the future.

Good resolutions

Many of us write lists of good resolutions to start the next year. In general, we commit to eating healthier, exercising more, spending more time with our loved ones, quitting smoking, getting more rest, freeing ourselves from stress, and so on. But, few of us remember to list good financial purposes, including a subsection entitled save more or take better care of your money. Therefore, it is convenient to add a detailed financial plan in which we specify the actions that we will carry out (step by step) to carry the purpose to fruition. Submission of the taxes is one thing that you should keep in mind now. Also for the tax matters you can make use of the sales tax calculator now.

Tax Submission and the Profits

With respect to taxes on profit, while in Real Profit the calculation basis is based on the profit calculated in the accounting, with some additions and exclusions, in Presumed Profit the base is obtained from the application of predefined percentages on revenue of the legal entity, therefore presumed profit, since it is “presumed” that the profit is that. If it is different, it will not affect these two taxes.

However, we cannot forget that there is certain subjectivity in this choice. This is because it is made at the beginning of the year and is valid for the whole year, making important variables to be estimated, such as revenue, for example, trying to predict what will be more advantageous for the company and not only what would have been in the previous year, because it has already passed.

Why should this option be reassessed every year?

  • Because the company’s situation may change from one year to the next. In these cases, it is likely that a change in taxation regime, if possible, will be advantageous. The company’s margin may change, expenses may gain or lose representativeness, the company may start to operate with a greater or lesser volume of imports or exports, and it may start to work as new products with different taxation, among other countless cases. It is necessary to monitor the numbers closely.

Only then is it possible to identify the best time to migrate from one model to another. It is not recommended to believe that a choice will bring the best results forever.

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