Tax management is an important part of the machinery of any company.
If we consider those operating in Brazil, this activity requires even more attention, considering that our fiscal-tax scenario is complex and full of adversity. In addition to paying taxes on time, tax management requires planning and constant monitoring of tax obligations, among others.
Besides the complex fiscal scenario, the tax burden is very high: in April this year, it rose from 31.77% of the gross domestic product (GDP) in 2020 to 33.90% in 2021, the highest level of the historical series that began in 2010. For companies operating in Brazil, this may be a limiting factor for their growth. Switching from one tax regime to another entails significant changes in tax payments and requires compliance with a series of accessory obligations.
For these reasons, tax management is also fundamental to achieving the goals of any business and ensuring its competitiveness in an aggressive market. Regardless of its size, any company can and should implement strategic tax management, acting preventively and correctively. According to the 13th Research on the Impact of the Coronavirus Pandemic on Small Businesses, 66% of companies are in debt, being that many are in debt with the tax authorities.
Important aspects of a strategic tax management
Planning is essential for the completion of any task, and tax management is no different. It is necessary to have the support of a specialized and experienced team that can choose the best tax regime considering the company’s current situation and its objectives. In addition, it is necessary to analyze this decision periodically, in view of any changes in the law or in the company itself.
Another important point is to know how to take advantage of the tax benefits offered at the municipal, state, and federal levels. They are nothing more than “a reduction or elimination of tax burden under the law or specific rule”, and can be characterized as amnesty, remission, subsidy, presumed credit, granting of exemption on a non-general basis, rate change, or change in the tax base. For this, it is necessary to analyze aspects such as the tax regime of the business, size, segment, etc.
The company must also carry out a fiscal review, a kind of audit performed on all fiscal activities in order to find possible failures and mitigate risks, developing strategies to improve the processes involved and, therefore, acting in a corrective and preventive way. Tax payments, fiscal bookkeeping, and the completion of accessory obligations are some of the aspects analyzed.
In a complex fiscal-tax scenario, such as the Brazilian one, you can count on the help of highly trained professionals. Pryor Global has a team of global accountants, tax specialists, and a financial team prepared to serve all business profiles. Get to know our solutions!