Every business is required to pay taxes. When you’re working for someone else, the responsibility of tax is not as heavy as when you own your own business. This is because employees normally get tax deducted from their monthly income and they don’t have to follow through with any paperwork. As a business owner, you are responsible for ensuring your business is up to date with the necessary paperwork and your vat submission Dubai is on time every time it is required. Failure to comply with the tax laws is a criminal offense. It’s imperative for your business to have all the tax paperwork in order. Here are the pros and cons of tax for small businesses.
Since you own the business, you are responsible for filing tax claims. Everyone who works for you has their tax deducted from their income and the rest is up to you. This responsibility requires you to have paperwork that states how much you earn as well as to have all your accounting affairs in order. You are responsible for the tax status of your business and ensuring you pay a certain percentage in tax every month. The benefit of this is, it teaches you to keep your books in order and encourages orderliness.
In order for your business to grow, you need to save up and expand. Having to pay for taxes every month can hinder you from growth. This is because when you are paying for taxes, you are hardly left with any money to reinvest in your business. This has a negative impact on small businesses as they need to expand in order to thrive. Having your business stay stagnant is not healthy and may have a permanent effect on the survival of your business.
Tax Money Improves the Country
Paying taxes has an indirect benefit to your business. Since every employed person and businesses are required to pay tax, the government uses the money paid to develop the country. This money can be used to improve infrastructure or improve other public services. Paying tax is a responsibility for everyone and if complied with, the country runs smoothly. There is no use in everybody missing tax payments and the country falling apart.
Accounting firm in Dubai UAE can help you stay up to date with your tax payments. It’s imperative to stay up to date with your tax requirements and pay your taxes monthly.