Looking for ways to optimize your taxes for 2025 as an entity? Check out our top 5 tips and do it in 2024!

It’s vacation time, everyone is thinking about vacations and the sea, and we at TPA Bulgaria are thinking about your future and our common good.
Here is our next article, which we hope you will find very useful!

It’s about how to reduce your tax as a corporate entity for next year.

Tax optimization is key for any business that wants to maintain financial stability and minimize expenses, especially in turbulent years like we are living in with wars, inflation, etc. As the new year begins, it’s important to prepare well to make the most of the tax reliefs available and avoid unnecessary costs. In this article, we’ll give you our top 5 tips for optimising your taxes for 2024.

1. Use tax reliefs and credits

Tax reliefs and credits are designed to reduce the tax burden on businesses. Make sure you are aware of all the available reliefs and credits that can be applied to your business. This may include:

– European projects: if your business is investing in innovation, you can take advantage of any current projects that relate to innovation, you can also keep track of current projects on the ISUN website by registering: https://eumis2020.government.bg/

– Reliefs for small businesses: smaller businesses have specific reliefs and one of them is the lack of VAT owed to the state and therefore only once a year reporting.

– Energy tax credits: If you invest in energy efficient technologies, you can get significant tax relief. There are currently many programs and credits that you can take advantage of.

2. Plan and manage your spending

Well-planned and managed expenses can help you optimize your taxes.Make sure all allowable expenses are properly documented and accounted for.This includes:- Business travel and business expenses: Record all expenses related to business travel, such as transportation, lodging and per diem.
– Training and development expenses: Investing in employee training can be tax deductible.- Equipment and maintenance costs: Make sure you properly depreciate fixed assets.

3.Review your company structureThe structure of your company can have a significant effect on the taxes you pay. Review whether your current structure is the most efficient for you. Some possible changes include:

– Moving to a limited liability company (LLC): This may offer tax advantages over a sole proprietorship or partnership.
– Set up a holding structure: This can help optimise tax if you have several companies under common management.4. Consult an expert from TPA Bulgaria:
Tax law is a complex and dynamic area. Consulting one of our experts can help you understand the tax options specific to your business and avoid potential problems.A tax expert can offer you:- Tailored strategies: personalised advice tailored to your specific needs.
– Update on changes in tax law and accounting services. Information on new tax laws and regulations.5. Keep up to date with changes in tax legislationTax legislation is constantly changing and it’s important to stay informed of new requirements and reliefs. Keep up to date with news and updates from tax authorities and professional bodies.

Tax optimisation requires careful planning and research. Taking advantage of tax deductions and credits, proper planning and expense management, reviewing your company structure, consulting with a tax expert, and monitoring changes in tax law are key steps to minimizing your tax liability in 2024.
Start implementing these tips today and prepare for an even more successful financial year!