Tax assessment and its application in companies
Patrick Gordinne Perez2023-10-05T03:02:57+00:00The concept of tax assessment is fundamental to the management of a company. In the following, we analyse its meaning and its current application.
What is the tax assessment applied to companies?
The tax assessment is a procedure by which the tax administration determines the amount that the taxpayer must pay in tax or, where appropriate, the amount that should be refunded to the taxpayer. It is a calculation based on the difference between what the taxpayer has declared and what the administration considers should be paid or received.
In the business context, tax assessment is essential. Companies, depending on their size and type, are subject to various taxes, such as corporate income tax, VAT, labour withholdings, among others. The settlement of these taxes involves:
- Declaration: The company files a tax return with the relevant economic and fiscal data for the tax period.
- Review: The tax administration can review this return. If it detects discrepancies or errors, it will proceed to make a provisional or definitive tax settlement, notifying the company of the amount to be paid or refunded.
- Payment or refund: The company, after receiving the assessment, must proceed to pay the amount indicated or wait for the refund if applicable.
This process ensures that companies comply with their tax obligations correctly and that any discrepancies or errors are rectified, thus ensuring the correct collection of taxes by the State.
Advantages of a tax assessment consultancy
Using a tax assessment consultancy offers companies a number of key advantages, which can optimise their tax burden and ensure efficient compliance with their obligations.
- Specialisation and experience: Consultancy firms have professionals specialised in the tax field. This specialisation translates into an in-depth knowledge of tax regulations, which allows them to identify opportunities and avoid errors in tax settlement.
- Saving time: Tax management can be complex and time-consuming, especially in companies with a wide range of operations. A consultancy takes care of the whole process, allowing the company to focus on its core business.
- Constant updating: Tax regulations are constantly changing. Consultancy firms keep up to date with these changes, ensuring that the company complies with the latest provisions and benefits from any new tax deductions or incentives.
- Risk minimisation: With the help of experts, the risk of making mistakes in tax declarations is reduced, which can result in penalties or surcharges from the administration.
- Tax optimisation: Good advice not only ensures tax compliance, but also advises on the most appropriate tax structure and decisions for the company, seeking tax efficiency within the legal framework.
- Representation before the administration: In the event of inspections or requirements by the tax administration, the consultancy can represent and defend the interests of the company, facilitating communication and negotiation with official bodies.
- Peace of mind and confidence: Knowing that expert professionals are managing the company’s tax affairs provides peace of mind. This allows business decisions to be taken with a clear vision of the tax panorama and without fear of involuntary non-compliance.
Having a tax settlement consultancy is an investment that can translate into significant savings, risk minimisation and more strategic and efficient tax management.
When a tax assessment is signed
The signing of a tax assessment occurs in different contexts, and its meaning may vary depending on the situation.
- Submission of self-assessments: When a taxpayer, whether an individual or a company, voluntarily files tax returns (such as VAT, personal income tax, or corporate income tax), he or she is making a self-assessment. By submitting and signing this self-assessment, the taxpayer is stating that this is the amount due or to be refunded.
- Verification procedures: If the tax administration, after reviewing the tax return filed by the taxpayer, considers that there are discrepancies and makes a different assessment, the taxpayer will be notified. In many cases, following allegations or evidence presented by the taxpayer, an agreement may be reached that culminates in a consensual assessment, which must be signed by both parties.
Signing a tax assessment implies acknowledgement and, in many cases, acceptance of the amount claimed, either to proceed with payment or to receive a refund.
Asesoria Orihuela Costa, your tax consultancy for companies
At Asesoría Orihuela Costa we offer you a comprehensive financial consultancy service from the moment you create your company. Regarding the payment of taxes, our team evaluates your company to optimize all tax payments, through a thorough work we manage to optimize each of your payments.
If you want to count on the work of a team specialised in business taxation, contact Asesoría Orihuela Costa and put your company in the best hands.