HOW DOES AN ENTREPRENEUR PAY TAXES ?

Today’s topic is really important to read for entrepreneur as we are going to discuss an important issue for entrepreneurs. Normally the entrepreneurs hate this topic because it is a very painful one for them and of course it is all about taxes. The entrepreneurs are also ordinary people like all of us and they simply do not like paying taxes and that is quite natural and understandable.  Besides this the entrepreneur can have really much problems and troubles with taxes just because it is hard to deal with so many taxes and especially if the taxes in your country are high. So now let’s understand how the entrepreneur pays his taxes.

First of all we want to inform you that you should not go illegal. The thing is that many entrepreneurs do not want to pay the taxes and they just do some illegal things. For example what they do is they cheat on the government and they represent their income much less than actually it is and in this way they just do not pay taxes but most of the time governments find this out and eventually they end up paying much more than actually they would have paid if they worked fairly. This is the issue with taxes and one of the most common mistakes that the entrepreneurs can allow to themselves to have.

When it comes to question how the entrepreneurs pay taxes, then we have to say that in every country it is really so different.  Different countries have different tax policy and therefore it is just different from country to country. Normally the entrepreneurs pay according to their income. This means that they have to pay some percent of their income to the government as a tax. I think this is quite fair. The thing is that the percent is different from country to country and this is where the entrepreneurs can deal with difficulties. However if you have read our previous articles you should know that we always advise to investigate the tax policy of the country and then only to start a business there. This is quite a rational way of making the things right and this is how you can deal with this.

Some countries also set the entrepreneur free of taxes for the beginning of the their startup so as they can get some balance between the outcome and income and after that only they start demanding the taxes from entrepreneurs.

Very often people do not understand why the entrepreneurs have to pay taxes. Well, this is one of the most common ways on how you can fill up the budget of your government. When the government in the face of that country allows you to make some income and to own a business in that territory then you have to pay some part of your income to that company and it is obviously very fair and there is nothing dishonest there actually. That is the reason why the entrepreneur pay taxes. Besides this, the entrepreneurs have to pay taxes just because some part of the state budget greatly depends on the income from different kinds of businesses.

Another thing to know about taxes and entrepreneurs is that some countries have different policies towards the national entrepreneurs and foreign ones. This means that if you are a stranger in the country then they can have a different kind of attitude to you as an entrepreneur and much high taxes than for the national entrepreneurs. Some countries on the other hand can want to attract the foreign entrepreneurs and make a better tax policy for them than for the national entrepreneurs.

As you have already noticed it is really difficult to understand the tax policy in general because it is different from country to country and there is no single way that we can say is good or not good. The only thing that we can for sure tell is that actually you have to obey all the rules that the country has on business and taxes because if you do not pay the taxes fairly and in proper way then for sure you are going to have really big problems later on with the government and eventually end up with bigger loss. That is the reason why you should follow all the prescribed rules and that is it. I know that paying taxes is not the best thing about the business and it is something which no one likes to do. You do not like to pay some part of your income to the state budget because you know the hard work that you put in it but you have to do it and just accept it. If you have decided to have a business then you knew that you had to pay taxes so you cannot complain about it.