Tax Planning & Tax Advice

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Today, taxation has become one of the key aspects of any business, therefore, proper tax planning can minimize the tax burden to optimize the economic resources available to any company. From our point of view, tax optimization is achieved by the application of tax legislation to the specific characteristics and needs of each business or business figure to minimize the tax load.

 National Tax Advice

Moreover, due to the ever more exacting demands of the tax authorities, it becomes imperative to have good advice and tax planning, in order not only to optimize our taxes but also to compile in the easiest, diligent and correct way, all obligations of information that each day, with greater volume and detail, is required by the tax authorities and other administrative bodies (Bank of Spain, Directorate General of Foreign Transactions, Trade Register, etc.).

We provide the following services, to accomplish with the previous objectives:

Monitoring and continued tax advice in business activities and online tax services (if it is required).
Tax resolution services
Income tax services
Tax filing services
Resolution of tax inquiries related to both business and particular
Review of compliance with tax obligations and filling, in case.
Identify options for minimizing the tax burden and drafting of the corresponding tax returns, both in terms of direct and indirect taxation
Advice on specific operations, individuals, self-employers and companies and trade groups, both in the field of direct taxation (income tax of natural persons, income tax, inheritance tax) and indirect (Value Added Tax, VAT).
Assistance and representation in proceedings before the Tax Administration, data verification procedures, limited verification procedure, inspection, economic-administrative claims and Tax courts.
Analysis of individual operations presenting alternatives for greater tax savings and implementing them.
Planning and execution of business operations and assets under the restructuring tax optimization criteria.
Management and execution of acquisition and/or sale of companies and assets.

What Are The Benefits Of Tax Planning

The main purpose of tax planning is to legally reduce or defer the amount of payable tax and use that money to generate income and adjust cash flow.

Consistent and proper planning can save or delay payment of many of the taxes you pay: value-added, profits, or personal income. Proper preparation and consistent execution generally do not pose a tax risk to the company or the account manager.

Strategic approaches concerning the situation

No taxpayer has the same requirements. The individual circumstances of the taxpayer must, therefore, be taken as a basis for tax planning appropriate to the situation.

Strategic approaches for optimal tax planning concerning the respective situation of the client can be above all:

  • the choice of the legal form for the respective entrepreneurial purpose, and
  • the reduction of the assessment base for income taxes including the indirectly associated shifting of income and expenses or payments and disbursements to other assessment periods.

Nevertheless, there are certain tax planning criteria, general tax planning options:

  • change of residence;
  • emigration;
  • for the sake of completeness.

The relevance of the tax strategy

Planning your taxes has many advantages: First, you naturally reduce your taxes and acquire a new mindset at the same time. Basic knowledge and understanding of the Spanish tax system, your own money and what happens with it are the cornerstones of being able to reduce taxes and save money. Not infrequently, tax planning and the resulting tax strategy is life-changing: you decide for yourself how much tax you want to pay and do not voluntarily hand over more than half of your profit to the state. Compound interest can, therefore, result in a high seven-figure differential after 30 to 40 years.

Tax planning is an important element of overall corporate planning. Tax planning has to be subordinate or embedded in overall corporate planning. In concrete terms: Sustainable strategic corporate decisions must never be motivated solely by tax considerations; they must also be meaningful based on all entrepreneurial considerations.

The advantages of the tax strategy at a glance:

  • Natural reduction of the tax burden
  • Considerable savings from the first year onwards
  • Basic knowledge of the tax system
  • Structured tax planning, adapted to your phase of life
  • More decision-making power: Control your tax payments yourself.

For whom is strategic planning suitable?

Also, the tax strategy can be relevant for start-ups or new businesses, since it sets the right course from the outset and a later change of name can often be expensive and time-consuming. Depending on the initial situation, tax advisors always check whether the tax strategy is the right one for you.

Tax Planning of Savings and Investment

When thinking about saving for the future, it is also important to plan the tax treatment of investment products, because of depending on our savings targets, we can also get a great tax saving.

Tax planning of savings and investments helps you to save regularly and be properly prepared to meet your financial needs in the future.

It offers several functions that will help you meet your specific financial needs with investments that are made according to your risk tolerance.

At GMTax Consultancy, we provide comprehensive advice on the tax treatment of the different types of investments and savings products on the market, designing a savings strategy as optimal as possible, thereby offering the following services:

  • Study of investment options and savings products.
  • A detailed study of the implications on the direct taxation of interests, dividends and capital gains and tax benefits for contributions made.
  • Declaration of assets located abroad and the possibility of the repatriation of funds.
  • Wealth Tax and Inheritance Tax Planning.

Tax planning step by step

Tax planners analyse your financial ‘status quo’ – honestly, openly and accurately. They take your growth targets into account and develop the optimal tax strategy for you. Then they work out a detailed tax strategy for you according to your wishes and ideas, which is certainly tailored to your needs.

Every decision of entrepreneurial significance has tax consequences. At the same time, tax laws also influence this decision. Therefore: Play through the tax consequences in advance of every important decision and look for tax-optimal alternatives. We support you in this demanding task with our experience and expertise. Please do not hesitate to contact us if you have any questions or concerns about tax planning.

Frequently Asked Questions:

How do contributions to pension plans tribute?

Contributions to pension schemes reduce the general income tax base up to a limit of € 8,000 or 30% of the net work or personal activity income.

How is taxed the rescue of the Pension trust?

It depends on how remuneration is perceived. If it occurs in the form of an annuity, it is taxed as income from work at the general tax rate applicable. If otherwise it is rescued as capital, it is one reduction up to 40%, depending on the data where the amount was invested.

How Investment Funds are taxed?

Investment Funds are taxed on the portion of income tax savings for the gain or loss generated in the sale, the application of the loss against the gain is permitted. While they own the taxpayer or they are sold but reinvested in other Investment Funds, no tax is applied. In any case, the Wealth Tax is applicable.

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