The tax liability of capital companies is an important aspect of their operation. Each of these companies, including limited liability companies, is liable to pay tax on profits in the form of corporation tax. For limited liability companies, the rate of this tax is 22% of profits.
Corporate tax for entrepreneurs is significantly lower compared to the taxes imposed on individuals. This tax is charged only on the profit made, which means that it is only taxable when the company makes a profit.
One of the benefits of this solution is that a wide range of expenses can be deducted from taxable income. It is important because it enables the company to manage its finances efficiently. Taxable income can be reduced by expenses such as depreciation, losses from previous years or investments, among others.
It is worth noting that some companies may find themselves in a situation where they do not have to pay corporation tax. This is possible if the company’s income is low enough or if there are factors that reduce the profit, such as losses from previous years or investments aimed at the long-term growth of the company.
