Most companies focus on how to reduce costs, activities that are usually relatively high anyway. Meanwhile, some companies with very high revenues want to increase costs, which at the same time reduce the income tax base. Tax optimization is allowed by Polish law, and the search for all solutions that will allow you to pay less tax is most desirable by business owners. How can we increase operating costs when running a company in Warsaw?
Higher employee salaries
Spending money, however, must be carried out with the head. It is not enough to purchase a few equipment for the company, because not every cost can be included in tax costs reducing the tax base. A tax cost can only be a cost that contributes to an increase in revenue or secures its source. Therefore, ill-considered company purchases are usually just an unnecessary expense that does not contribute anything in tax matters. Meanwhile, it is worth starting to increase costs by appreciating the company’s employees. It is a good idea to increase the salaries of those people who really contribute to the development of the company. Of course, the point is not to reward only people in high positions, who usually earn a lot anyway. The system of raises should be clear and transparent in such a way that so that every employee can apply for it. In addition, it is worth taking care of employee bonuses, for example quarterly or annual, which are also an incentive for employees. Costs can also be increased by providing employees with various types of benefits, such as a gym card or medical insurance.
Safe deposit box
In every company there are valuable items that are not always used at a given time. They are usually insured, but their proper storage can be quite a problem for business owners. Safe deposit boxes in Warsaw are a good solution. Both banks and private entities offer this type of storage services. In addition, valuable items are properly protected by security systems and employees. A safe deposit box in Warsaw can be a service purchased directly from the bank, but it should be borne in mind that not every bank has safe deposit boxes in Warsaw in its offer. This type of service is the domain of larger banks that operate on a really large scale. However, it is possible to use safe deposit boxes in Warsaw offered by private companies. They offer their customers good quality services at slightly lower prices than in the case of bank safe deposit boxes. Let us remember that both banks and private companies issue invoices to their clients, thanks to which active VAT taxpayers can deduct it and at the same time reduce the amount due to the tax office.
A very good solution for companies that have free cash is to make tangible investments. For example, a company may decide to expand its business by opening new subsidiaries or other types of investments that will raise the company’s profile in the market. It is worth remembering, however, that investments are not a direct tax expense at the time they are incurred. We are talking here rather about long-term tax planning, which allows you to gradually reduce the tax base in subsequent months and even years. The tax cost is the depreciation of fixed assets created as a result of the investment, but the depreciation must be consistent with the rates adopted in the tax laws. Depreciation is carried out in a monthly sequence, thanks to which we can reduce the tax base every month. However, this is not a solution for companies that need short-term tax optimization, under which the tax payable in a given month will be reduced. Nevertheless, it is worth remembering that investments can be used not only to increase costs. A well-thought-out company development plan assumes investing cash in investment products that will bring significant profits to the company in the future. Each company must develop, otherwise it is threatened with stagnation and being forced out of the market by other entities that focus on long-term development.
Increasing the costs, and at the same time lowering the income tax base, should be done deliberately so as to avoid unnecessary expenses that do not constitute statutory tax costs. Otherwise, the company is also exposed to consequences from the tax office in the event of an inspection. Therefore, it is worth implementing a tax planning system in the company that will allow for effective management of the amount of taxes paid, and additionally it will constitute a coherent plan for the company’s development.