Financial Education - The simple or complex tax as tax planning tools

I have already told you that tax planning according to its type corresponds to the complexity of the company's tax plan, and it is divided into simple and complex, and this will be the topic I will share with you in the following lines.

I begin by saying that simple tax planning is limited only to the implementation of tax strategies, included in the different alternatives and benefits offered by the laws, related legal regulations and government incentives. As well as the establishment, follow-up and compliance with tax and parafiscal obligation schedules.

Complex tax planning, on the other hand, is related to complex tax planning when the individual, company or economic entity considers all the elements involved, the economic operations as a whole, where simple tax planning is only one component.

Emphasizing the operations of the company, its efficiency and profitability. It is oriented towards the optimization of the economic and financial operations, trying to improve constantly, to achieve the objectives pursued, the situation, result and capital accounts, for the short, medium and long term.

In conclusion, simple or complex tax planning will be determined according to its purpose, since these classifications correspond to the taxpayer's intentions, with regard to his behavior, in relation to tax and parafiscal obligations.