The dates when the tax year begins and when the tax year ends are different in countries all over the world but the one thing that they do have in common is that business taxes do need to be paid. It can be a very stressful time for many businesses and especially so if they are brand-new and they have only been in operation for 12 months. Many people say that the only thing that you have to do in this life is to die and to pay your taxes and this is incredibly true. It is a legal obligation that you must follow no matter what country that you operate in and it can actually contribute to your overall business success.
When you are setting up a new business in a country like China, for example, you always need to be compliant and that involves a number of tax compliance costs. It would make far more sense to contract out your needs to an external service provider that knows Chinese tax law from back to front and from top to bottom. This means that your taxes are submitted properly and all of the relevant paperwork is sent on time. It is so important to be tax compliant in any country and the following are some of the reasons why.
- You are contributing to society – We all must do our bit and even though this may not be your country of origin, you are operating a business in it and so it follows that you would want to contribute to the society that you live in at this moment in time. All of this money goes into the government coffers and it is then used to provide infrastructure like roads, schools and hospitals. By making sure that you fulfil your tax obligations, you are doing your bit for the country.
- You are following the regulations – If you are a new business just starting off a new country then the last thing that you want to do is to upset the government in the country and specifically the taxman. It is important that you comply with the various regulations and laws that are put into place to not only protect you but to protect society as a whole. If you are paying your taxes then you will be free from any legal issues and it will also help your business reputation.
- You can bid for government contracts – Taking the time to get your company properly registered so that you can pay tax and follow the various tax regulations, will allow you to put in tenders for government contracts depending on the particular industry that you operate in. Your business will benefit financially which will lead to its further growth and overall development.
As you can see, it makes perfect sense that you would want to pay your taxes in full and on time every single year. The last thing that you want is to get some kind of penalty.