Profit extraction is the financial gain from the sale of an investment such as shares or the sale of a property at a profit. However, within a business environment it is vital to ascertain and control the taxation on the financial gains from the business. Understanding how making use of these various respites concurrently and how this impacts the tax liability projections is a core function of effective financial planning for small and large business enterprises alike.
PORFIT EXTRACTION STRATEGIES
There are different methods by which taxation on the financial gains can be controlled; the strategies used focus on minimizing the taxation and maximizing the profit. Some of the strategies that are generally used by business to maximise profit extraction and to minimize taxation are:
Each strategy provides varying degrees of tax relief granted that the required criteria are met. Thus, it is best achieved when these various tax relief tools are used in conjunction with each other. This may then also include retaining profits within the company as when profits are well spread throughout the various financial avenues available to you can often yield the best financial results. Each business is however unique and you as a business owner will undoubtedly have your own financial goals, both for your business and also personally.
We offer expert services in profit extraction, by first doing an in depth analysis of your business and how its finances function. Only once this is properly understood can profit extraction be optimised through effective and coordinated strategic planning.
Speak to our experts and find out how we can assist you in configuring your business finances for a more profitable and sustainable future.