The tax book of incomes and expenditures. The lump sum tax

Choosing the right form of taxation is one of the problems faced by entrepreneurs, and the question  what is more advantageous, the lump sum taxation or  tax book of incomes and expenditures, is very often asked.

The greatest advantages of flat-rate taxation include low tax rates and low level of complexity of accounting records. However, the lump sum taxation does not take into account the tax deductible expenses and the tax must be paid at the time of the loss. In the case of the tax book of incomes and expenditures, the tax is paid on the actual revenue. However, its rate is much higher than in the case of a lump sum taxation. A reliable tax book of incomes and expenditures should include all the company's expenses. The book must be kept in accordance with the applicable provisions of the Annex to the Regulation of the Minister of Finance of August 26, 2003.

The form of taxation selection should be adapted to the type of activity, its scale and the level of costs incurred. The specialists from Optimum International Tax Experts  Tax Office will advise you on the most advantageous decision in this respect.

The service of the tax book of incomes and expenditures includes:

  • we record business operations on the running basis,
  • we record fixed assets and equipment,
  • we analyse the documents from the accounting and formal point of view,
  • we prepare payrolls, invoices for contracts and declarations,
  • we prepare applications for social and health insurance,
  • we prepare monthly insurance and tax statements (VAT-7),
  • we provide the necessary factual support of an accounting, tax and legal nature.

The service of the lump sum tax payment includes:

  • we keep records of the value added tax,
  • we record fixed assets and equipment,
  • We make payments to the Revenue Office and the Social Insurance Institution,
  • co-operating with specialists from Personalis, we prepare necessary employee documentation,
  • we compile VAT returns,
  • we prepare annual statements on the amount of revenue received,
  • we provide the necessary factual support of an accounting and legal nature.