You are here

The Main Stages Of The Tax Campaign

Submitted by irslogics on Sat, 05/28/2022 - 22:33

The tax form, or business tax
declaration, documents the tax administration on the company's financial
performance. It consists of a series of declarations and annexed documents
based on which the taxable result of the company is established. Tax resolution
software is mandatory for all companies, except for self-employed
entrepreneurs.How to complete a tax return?The tax return is drawn up
based on accounting data appearing in the annual accounts published at the end
of the financial year. This, therefore, opens what is called the tax campaign
of the company. The main components of the tax return are:• The declaration of the
result, the allocation of the result, and the mention of the deficit, if
necessary• The table of provisions,
receivables, and payables• Realized capital gains or
losses• The added value produced• The composition of the share
capital and details of any holdings in subsidiariesNormal or simplified tax
return?Depending on whether the
company is subject to a normal real or simplified real regime, the tax return
to be produced is a normal tax return or a simplified tax return – sometimes a
simplified balance sheet tax return.Taking into account the
possibilities of tax deductions:DepreciationAccounting depreciation allows
the company to expend a proportionate part of the value of each fixed asset
annually. For example, a property depreciated in 5 years will see 20% of its
purchase value reduce the accounting result of the company for five years and,
therefore, the tax to be paid.Tax depreciationThe calculation of tax depreciation corresponds to a
derogatory approach to supporting businesses. Three purely fiscal depreciation
systems may replace the general principle of accounting depreciation to
encourage investment.Decreasing tax depreciation
affects the rate of depreciation. Companies are authorized to pass on a
proportional share of higher costs for certain capital goods with a long
lifespan during the first years of operation.The transmission of the tax
packageElectronic declaration of the tax package and electronic payment is
mandatory for most business taxes. The transmission of the tax package must
occur within three months of the closing date of the financial year. However,
there is no obligation to wait for the deadline: whatever the date of remote
transmission, the direct debit is only made on the due date.The tax certificate certifies
on request the regularity of a company's tax situation in terms of declaration
and payment. The tax certificate applies to corporation tax and VAT. It
concerns all businesses, including sole proprietorships. For example, the
auto-entrepreneur tax certificate may be necessary for the context of public
tenders.The benefits of an automated
tax management solution• Reliability: Automation of calculations,
Automation of the editing of summary documents, Consistency checks personalized
by business• Integration: Automated
extraction of accounting data, Automated generation of the tax package,
Automated filling of the declaration• Traceability: Recording of
accounting and tax operations, Recording of the history of exchanges, Secure
archiving of documents• Compliance: Consideration of
tax regulations, Consideration of overriding provisions, Confidentiality of tax
dataAt the end of the
audit, the company receives a proposal for adjustment or notice of the absence
of adjustment. In the event of an adjustment, and after exhaustion of the
deadlines and remedies, it is up to the company to pay the sums due and make an
accounting entry of the tax adjustment.