11 Jan What is tax optimisation and why you need it ?
Tax optimization from a legal perspective refers to the process of structuring one’s financial and business activities in a manner that minimizes the amount of tax liability owed to the government. This can be accomplished through a variety of strategies and tactics, such as taking advantage of tax incentives, deductions, credits, and other tax breaks; properly planning and timing financial transactions; and utilizing tax-efficient investment strategies.
However, it’s important to note that tax optimization is not the same as tax evasion, which involves knowingly failing to report or underreporting one’s taxable income in order to reduce tax liability. Tax optimization is a lawful process that is within the bounds of the tax code and regulations, while tax evasion is illegal and can result in serious consequences, including fines, penalties, and even criminal charges.
For a company operating in Vietnam, it is essential to work with experienced legal and tax professionals to ensure that their tax optimization strategies are in compliance with local laws and regulations. This can help to minimize the risk of penalties and ensure that the company is operating in a tax-efficient manner while maintaining full compliance with the law.
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