2013 fiscal year is about to end. It is now time to review the balance sheet and Profit & Loss accounts of your company, in order to determine the effects of all the tax measures undertaken throughout this year.
Despite living in a context of deficit-driven tax increase, caused by the government deficit, there is still some room for saving taxes under current legislation.
From PBS, we deem it convenient to remind you of the following Corporation tax regulations, which will surely hep you prepare your year-end close.
✔ Research and Development activities are strongly encouraged since tax reliefs applied to these activities are maintained. Their application, combined with the Patent Box reduction, (about which we informed you in our previous post), can lead to a significant decrease of the effective Corporation tax rate.
✔ The tax treatment of investment has slightly improved as it benefits from a new tax credit of 10% of the fiscal year tax profits, providing these are invested in new tangible assets or real estate investments, and it applies to companies with a turnover below 10 million Euro.
✔ Newly created entities starting a new activity in 2013 can enjoy a reduced Corporation tax rate of 15%, for a taxable base up to 300.000 Euro, and a rate of 20% if it exceeds that amount..
✔ The tax credit for hiring disabled employees has recently been increased, effective as of Jan. 01, 2013, ranging between 9,000.00 and 12,000.00 Euro for each individual per year increasing the average number of these employees, in respect of the previous year.