A tax credit is necessary in order to change the timing of tax payments for enterprises. These changes may only be made in accordance with the law. Its term may be changed. In some cases, it takes the form of deferment, installment plan, and so on. A tax credit is something that is often useful not only for young companies, but also for companies that have become stronger on the market. This type of loan has many specific features.
Its main difference from deferment and installment plan is that it is provided not for six months, but for a year (meaning that twelve months is the maximum period). Investment tax credit is unique in that it can be obtained not in order to improve the overly difficult condition of the enterprise, but in order to be able to achieve certain goals.
The terms of the tax credit are subject to change. As a rule, this is accompanied by interest accrual or registration of a guarantee or collateral.
The pledge can be provided not only by the payer, but also by a third party. Collateral property may be located at the mortgagor, but transferring it to the tax authorities to obtain the value of the collateral is not excluded.
A tax credit, or rather the term for its payment, cannot be changed if:
- an investigation is underway for any offense in connection with tax legislation;
- there is a felony that is fiscal ;
- there are suspicions that the delay that the taxpayer wishes to receive is necessary for him to leave the country and conceal his real income.
A tax credit helps to delay the payment of taxes in case of natural disasters, technical disasters, fulfillment of a state order, as well as with delayed payments from the budget. Only the amount missing for payment or the amount of damage caused is considered. These limits are never exceeded.
A tax credit may have other reasons. Some enterprises turn to him when there is a real threat of bankruptcy or because of the unstable financial situation there is no way to pay all the necessary taxes.
Some activities are characterized by seasonal activity. Tax credit extends to almost every one of them. The Customs Code states that it is possible to delay the payment of customs duties. Payment in this case must be made no later than two months from the filing of the tax return.
After the application submitted for tax credit is approved, a special loan agreement will be concluded. The term of imprisonment is seven days. This process takes place with the participation of the authorized body.
As mentioned above, an investment tax credit is something that is provided not for preventing ruin, but for development. Enterprises, as a rule, take it when some new priority areas appear. Its validity can reach five years. The company will reduce payments until the debt is equal to the amount of the loan. In one reporting period, tax payments can be reduced to fifty percent.
When paying tax, the tax credit instantly ceases. It may also cease by decision of the court, by agreement of the parties and, of course, upon expiration of the term.
Many entrepreneurs felt his benefit. It helps not only to avoid production shutdown and bankruptcy, but also provides an opportunity to develop, gain a foothold in the market and begin to carry out activities in new directions. Getting it in most cases is not too difficult.