When running a business, it is important to consider many diverse legal aspects to ensure that our company operates in compliance with the law. The bane of all entrepreneurs is the complexity of tax regulations, and failure to comply with the applicable rules can be very costly and lead to many problems. Therefore, entrusting the accounting of your company to professionals who stay up to date with the changes in regulations, which occur every year, is the safest approach.
What is simplified accounting?
In the case of sole proprietorships and partnerships (general, civil, and general partnerships, with the condition that their net revenues are lower than 1,200,000 euros), accounting is based on the Tax Revenue and Expense Ledger. In this case, it is necessary to record all generated revenues and incurred costs in the ledger. Income forms the basis for taxation in this form. Another simplified form of taxation is the lump-sum recorded income tax. Under this system, the entrepreneur pays taxes on their revenues, but they are not allowed to deduct costs. There are also limitations on the use of this taxation form – a business can switch to the lump-sum recorded income tax if, in the previous year, its revenues were equal to or less than 2,000,000 EUR. The lump-sum tax rates for recorded incomes vary, and their rates depend on the industry. For example, liberal professions such as doctors have a rate of 14%, while service activities or income from rent or lease have a rate of 8.5%.
What services do we provide in the field of simplified accounting?
The name itself suggests that simplified accounting should not be difficult. It is certainly not as complex as full accounting, but accuracy and even meticulousness are essential to ensure compliance with regulations. Our office offers a full range of services, including comprehensive accounting services for both sole proprietorships and companies. Our services include preparing and submitting declarations to the relevant Tax Office. Upon the client’s request, we can represent them before the Tax Office. We also handle the preparation of personal income tax returns (PIT).
Finding a competent tax advisor who can help choose the most advantageous taxation form is one of the factors that determine whether a business will succeed. Using the services of our office guarantees accurate tax compliance and top-notch tax advisory.