When you own a business, it's like your baby. You'll do everything you can to keep it alive and thriving. The ultimate goal is to see it through to the end, which means until you die. You want the most for your business, and you'll go to great lengths to oversee that. When it comes to taxes, it might feel like foreign waters, primarily if you haven't operated your business for very long. Though you know you want to stay legal when filing, you need to be compliant, but you also don't want to overpay. 

Is there a way to guarantee that you're utilizing the best tax strategy to meet your needs while not overpaying on your taxes? The great news is there are many tax strategies that can work for your business. It doesn't matter if you're a plumber, cake decorator, or even an attorney. Individuals, aside from companies, are taxed at a progressive scale in Australia. High earners can lose up to 45% of their income. If this doesn't sound agreeable to you, we don't blame you.

An Offshore Company

For high earners, it's essential to consider where you're holding your money. Investing in an offshore company setup could help you save thousands of tax time. This is because you're taking advantage of the lower tax rates in a different country versus Australia. This is not something for the faint of heart, and you should consider an accountant to utilize this money-saving option. It is legal to do, but you need to do it correctly.

Tax Structure Matters

As mentioned earlier, high earners can lose 45% of their personal income. When compared to businesses that have to pay 30%, the 15% savings can be massive. If you haven't Incorporated your business to corporate status, you’ll want to consider doing so. Not only can you lower your tax rate, but you can protect your personal assets too.

Look For Deductions

Deductions are all around you. Knowing what deductions to look for can allow you to spend differently throughout the year. For example, you can take a deduction on gifts given to charities and other organizations. However, there is a hitch. You have to choose a verifiable DGR organization. You also need to keep a receipt in order to claim the deduction. This isn't as complicated as it appears, but it can give you savings at the end of the year.