The Right Tax Solutions for the Small Businesses

The Right Tax Solutions for the Small Businesses


Is the tax model better? The general view is that a system with a low tax rate and a broad tax base that is, the model has a better financial outcome. It treats different companies more equally and is simpler and more transparent than the model based on many tax deductions.

Simple and predictable taxation is a and 0 for everything

Tax simplicity and administrative ease are important for businesses. The complexity of the interpretation of taxation can lead to a situation in which the taxpayer is struggling for years over whether taxes have been paid correctly or incorrectly. Such a situation may arise, for example, in connection with acquisitions or, in general, in a situation where a company has cross-border, international business. In case of the small business tax this is important.

For example, a taxpayer may require an entrepreneur to pay large back taxes in a situation where the interpretation of taxation has not been unambiguous. Ensuring that tax legislation can be assessed as accurately as possible in advance is therefore very important.

In the case of companies, one can be sure that protracted lawsuits and post-tax battles will not at least improve the business climate.

Other taxes paid by the entrepreneur

VAT is included in the price of each product or service sold by the company. The general VAT rate has been 24 percent since 2013. VAT is the largest single tax on the state side. Its return to the state this year is about 17 billion euros.

The business also involves taxes paid by owners on the capital income they receive, ie dividend income. For example, a sole proprietor or a family entrepreneur constantly looks at taxation as a whole, with corporate tax on one side of the coin and the dividend tax rate on it on the other side.

For the Companies

Companies also face many other taxes and fees in their operations. For example, companies pay property tax and transfer tax, and they are also subject to a wide range of taxes that directly affect their operations but are not designated as taxes. These include various environmental permit and other administrative fees.

Corporate taxation can seem like a difficult thing at first. However, after reading this story, you will understand the basics to get you started.


When setting up a company, register in the advance payment register and, if the turnover for the financial year is more than 10,000 euros, also in the VAT register. It is important to find out from the outset about the Tax Administration’s reporting obligations and what to pay, how much and when.

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