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There you go, your company losing money for the first few years but still paying the tax. Then you go and make a bit of a profit for the first time and the taxes pile up and I am told next year if we make a profit again as we are now in the clear the taxes on the profit will be in total close to 50%.

 

I don't know the details yet, and know that taxes are of course inevitable, but whatever it is pretty depressing to have a decent year of results and then be whacked with taxes only to hear that future success will mean they go up considerably once more.

 

I don't want to work today.

 

\:\(

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I do have an accountant.

 

Are you implying that a company can operate without paying any taxes whatsoever?

 

Anyway I am going to be getting lots of advice on how to move things around to minimise those taxes next year. I hate not understanding things fully, it is very annoying.

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 Originally Posted By: mina2
I do have an accountant.

Are you implying that a company can operate without paying any taxes whatsoever?

Anyway I am going to be getting lots of advice on how to move things around to minimise those taxes next year. I hate not understanding things fully, it is very annoying.


and you own your own company? uh-oh
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I don't mind paying taxes - all part of the costs of running a business. Necessary to keep tar on the roads, Emergency Departments open and basic services operating that keep our communities working.

 

What I hate is paying Payroll Tax in Western Australia. What is THAT? Our state government (contrary to other state governments) think it is a good idea to slog midsized business with an EXTRA tax, on top of all the others that everyone else pays, just for providing jobs to people....wheres the logic in that?

 

Payroll Tax 2007 - whoompa - there goes our ski shack!

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MB, whatabout loaning your tax money to the UNHCR so they can build refugee camps for holding refugees while they wait to be screened (meaning while the UNHCR are slowly coming up with a plan to deal with them). And then the UNHCR turns around and says "can't pay back, stuff you HK, serves you right for the UK designating you as a Port of First Asylum"

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Best thing ever did here was join the small business association and they've been really really helpful the past few years. I leave it all to my wife to do with them (fatigue really began to set in after 30mins)

So many claimable things didn't know about and there's a lot of massage-ability built into the system of those in the know.

My tax burden (income we're talking about) is like a miniscule of what I'd be coughing up in Oz.

But for how much longer?????

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I think you are right big-will which is one of the reasons there is such a high failure rate for new businesses. Understanding the tax system and how to minimise your contribution (legally of course!) is a major part of running a successful business.

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Soubriquette does my tax. She doesn't miss much.

 

As for Oz, anyone come across provisional tax? At the end of your first year they hit you for last year's tax, AND next year's tax, plus some. That's before you've earned any money.

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 Originally Posted By: Go Native
I think you are right big-will which is one of the reasons there is such a high failure rate for new businesses. Understanding the tax system and how to minimise your contribution (legally of course!) is a major part of running a successful business.


Spot on!
But even if you hold a degree in taxation, unless you constantly stay abreast of the changes you can not hope to be on top of all the tax issues as they are constantly changing things (and often your business situation changes). This is where we got caught - we had a big growth year, and went over the payroll threshhold therefore had to pay the tax on all employee's wages back to dollar zero. We knew it was coming, but the business grew a bit faster than we thought it would and it caught us the year before we planned!

The best plan for anyone in business is to have a brilliant accountant who is a full bottle on the tax as applicable to your business and prepared to help you grow and thrive within the system AND keep you up to date and informed.

Thursday - I have to admit ignorance to the HK tax issue you talk about, but I would be keen to hear the lowdown. I am interested.

Soubs - yep when we began our fruit and veg business 14 years ago we were on the provisional tax system...was a kicker the 2nd year! Especially for a fledgling business run by mortgage belt new parents! crazy.gif But I still reckon it is harder to get your head around trading as a company, as we are now. There are SO many thing you need to be a full bottle on - and it keeps CHANGING! Still .... it is better than working for 'the man'.
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 Originally Posted By: soubriquet
Soubriquette does my tax. She doesn't miss much.

As for Oz, anyone come across provisional tax? At the end of your first year they hit you for last year's tax, AND next year's tax, plus some. That's before you've earned any money.


Haven't they abolished provisional tax now?
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No idea. What I recall is that I did about $5,000 worth of consulting in 1989, and in 1990 I had a tax bill for $30,000. That was a BIG incentive for personal enterprise.

 

In those days I used to believe in playing by the rules. Now the bastards can come and get me if they want.

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 Originally Posted By: big-will
Disagree with what?


Sorry mate, mis read what you wrote..
Yep most people don't know what's going on but the successful people seem to manage.

As MB said, don't skimp on the accountant!
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Last year the local tax office in Kamakura doubled the tax amount residents are required to pay annually. I'm wondering if others here in different parts of Japan have had to do the same and if so what is the explanation for such a big increase. As explained to me the increase would remain for several years.

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