Optimization of the tax burden in economic operations to be carried out by the companies.
Design of fiscally efficient corporate structures.
Corporate tax planning
The tax laws also serve a purpose of economic policy, trying to guide the activity of individuals towards socially desirable purposes. Thus, some activities are encouraged through reductions or even tax subsidies while at the same time discouraging others, increasing their tax burden. This implies that the tax burden borne by an individual will vary depending on the decisions taken.
Thus, when carrying out an investment, it is possible to choose among diverse assets (investment funds, bank deposits, pension plans, etc.), with a very different tax treatment.
When starting the exercise of a business activity, it can be done under a corporate or individual company form. The form of company will determine the amount of the tax of the benefit and even, in some cases, the taxation by IVA.
The Corporate Tax Planning seeks to know a priori the fiscal consequences of individual decisions, in order to be able to act in the most appropriate manner. Although paying taxes is an inescapable obligation, the tax system allows certain options that should be known, know how to quantify, and compare.
If we want to find out how taxation affects economic activity, the first thing we will have to clarify is what tax rate we should consider as relevant when making decisions. The problem can be posed in the context of a proportional tax or a progressive tax.
Pablo Barba, Lawyer.
Pablo Barba is the head of our group of Lawyers. He is the founder of Ausbar Lawyer and has a great experience in high level offices, among them Garrigues Firm.