Tax planning and optimization
Tax optimization consists in introducing a strategy aimed at minimizing the tax burden and increasing the company’s financial liquidity. Carried out in accordance with the law, it is fully legal.
Planning and optimization appear primarily in the context of income tax and value added tax. Planning and optimization can cover both one tax and all public levies that are paid by the company. Thinking about the most appropriate choices, the entrepreneur should entrust this task to specialists in the field of tax law. It is easy to confuse tax avoidance with tax evasion. Evasion is treated as a criminal act consisting in failure to pay tax imposed by applicable law.
The services provided by the Law Firm include, among others:
- setting up a company abroad, i.e. in practice where tax liabilities remain lower than in the entrepreneur’s home country,
- creation of a foreign holding company, i.e. a structure associating economic entities that are legally and organisationally independent from the parent entity – a properly constructed foreign holding will create the possibility of capital flow guaranteeing the lowest possible tax liabilities,
- creating an international business structure – a solution similar to a foreign holding, but much less complex in terms of organization,
- change of tax residence – a choice beneficial for natural persons consisting in a change of jurisdiction, i.e. tax emigration,
- a trust, i.e. an agreement between a donor (an entity that transfers specific assets) and the so-called trustee, the entity managing this property. The trust serves to protect assets against potential creditors, and in terms of optimization, it protects against too high taxation in the event of its inheritance,
- establishing a private foundation – an impersonal legal person that protects the property entrusted to it. There are jurisdictions where private foundations remain completely exempt from income tax, which is important in terms of tax optimization.
