- July 26, 2024
- Posted by: admin
- Category: Uncategorized
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TAX PLANNING CONSIDERATIONS FOR BUSINESSES
Tax planning is simply arranging your personal or business affairs in such a way that you reduce your tax burden in a legal way.
Tax planning strategies
- Keeping Complete and Accurate Record
- Take Advantage of Capital allowances
- Write Off of Bad debts to reduce
- Procuring business goods & services in the company’s name.
- Take Advantage of deductions and reliefs (Sole proprietors)
- Separate business expenses and incomes from personal ones to ensure that you produce clear reports on profitability and consequently your tax liability
- Seek Tax Advisory
- Don’t ignore KRA notices
- Compliance with the tax laws is less costly as compared to paying heavy penalties, being charged in the court of law or a possibility of seizure of assets by tax authorities.
- Make payments through the bank or MPESA to ease record keeping and evidence production in case of tax disputes.