As the business year draws to a close, many entrepreneurs focus on their final profit and taxable base. However, smart business owners know that tax optimization starts earlier, not in December. Now is the right time to review strategies to reduce corporate income tax (CIT) liabilities.
A key method is to record all eligible expenses properly. These may include investments in equipment and technology, employee training, donations, and other business-related costs. Correctly documented expenses reduce your taxable base and lower your tax bill.
Another effective tool is employee bonuses – such as holiday pay or performance-based rewards. This not only boosts employee motivation but also counts as a deductible expense, lowering taxable profit.
It is also wise to review outstanding receivables. Long-overdue invoices may justify impairments, presenting a more realistic balance sheet and reducing the taxable base.
Accounting firms like K2A Accounting Ljubljana can play a key role here: providing analysis, recommending the best measures, and calculating the financial impact of each decision. With professional tax advice, you ensure your company pays the right amount of tax – not more.