Every year, the tax season starts from the 1st of July, and for 2021, the company tax rate is reduced to 26%. It is legalized after passing “The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018”. It happened in October 2018 by the parliament. Here is a brief description of the company tax return you can get to know from a tax agent in Perth.
The eligibility criteria
In the 2021 income year, firms eligible to access the reduced company tax rate of 26% if they are a BRE for the respective time. BRE is Base Rate Entity, and it must have an aggregated turnover that is less than $50 million. Secondly, BSE is the total assessable income and should be 80% or lower.
About Base Rate Entity Passive Income
It is also known as BREPI and incorporates incomes, like interest, rate, dividends, amount, net capital gains, etc., included in trust or partnership distributions. The trust distribution is not considered as BREOI after a trust distribution received by a firm contains business trading income of trust only. Companies with BREs are subjected to a company tax rate of 30% and it includes investment firms also. To lodge tax return,you can speak with the professionals for further information.
Dividends to be paid in 2021
The decrease in the rate also has an impact on a BRE pays dividends of the income year 2021. The highest franking credits depend on the “corporate tax rate for imputation purposes”. If you wish to work out with the corporate tax rate, the right professionals can guide you.
The company income tax return is complicated and can be difficult for anyone to understand. Considering that, it is better to speak with professionals who have in-depth knowledge about the field. But when you consider choosing one, you will come across several choices. Here are some of the factors that will guide you in picking the right tax agent.
Factors to choose a tax professional
- Ask for some recommendations
It is always better to ask for some recommendations from your friends or business acquaintances. Getting a few referrals helps you understand where to start; otherwise, you will have a lot of choices. It makes things difficult for you and involves a lot of time. Therefore, the first thing you must consider doing is asking for suggestions.
- Looking for a proactive accountant
An accountant is like your partner and supports you and the organization throughout the entire year and not only during the tax period. Everything changes when rapidly when you own a business. Thus, partnering with an accountant will ensure that you take advantage of all possible tax savings.
- Check the years of experience.
For an instance, think about whether you would like to go to an experienced doctor or who does not hold the proper qualification. Of course, you will go with the first choice, and the same logic is applicable here as well. When it comes to choosing an accountant, consider years of experience. The more experienced an accountant is, the better it is for your company. They will have all the necessary details, where you can cut down expenses, how things need to be streamlined, etc. Alongside that, verifying the qualification details of the accountant is also an important factor that you must not avoid.
- Opt for a fixed price tax agent
To file a company tax return Perth, if you are looking for an accountant, insist on a fixed price. It ensures that you do not receive a ten-page bill without having any idea of that beforehand. It is always vital to understand the terms and conditions of the services they offer before finalizing. In no way, your company must pay for the expenses, leading to unnecessary wastage of money.
- Building a healthy relation
Look for professionals with who you can build a healthy relationship and is ready to share the latest updates. They should never idea anything from you at any cost irrespective of whoever’s mistake it is. Building a relationship with an accountant helps in making them understand what you need and conveying the specific needs of the business. That’s why you must ensure to choose an account that is friendly and is interested to know about your firm.
- The previous records
Did you check the previous records of the clients? If not, you must do it, as it helps to know what the client has to say about them. If they are not happy, there is no point in availing of their services. It’s because the accountants won’t be as per your needs. Additionally, go through the review section and check if they have more positive or negative reviews. Considering that, opt for a company with more positive reviews and is highly rated.
- Updated of the latest information
The accountants must be updated with all the latest information, or else you can be in big trouble. Because of that, you may need to pay unnecessary fines or penalties, and it is not at all good for the company. To avoid that, you must interview the top two to three tax agents and see who has better knowledge about the field. Based on that, you can determine what to do and whom to hire.
- Are they licensed?
Check if the accountants you are planning to hire are licensed or not? Having licenses mean they have attained the qualification requirements. You should never hire professionals who do not have it. Some professionals can claim to be licensed, but actually, they are not. So, you must ask for papers from them to verify they are telling truth.
Considering the above parameters, you can pick the best tax agent near you. Do not hurry as you can make a wrong decision, so it is better to be slow and steady. Instead of whether you own a business or stepping into the business world, tax agents will keep your company in good firm. The earlier you hire, the better it will be for you and your business.