Should new Entrepreneurs pay Tax?

[Kirubel]

We all know that starting a new business is very hard and when we are new entrepreneurs we have already spent all our money on our inventions and new business and we don't have any money and also getting a profit for the first few months is very hard since we can't have many customers and in order to get known our price for the products are low, so do you think forcing those new Entrepreneurs to pay Tax is a right thing?

 

[eLdavis]

I think it depends on the system. Once a business has been registered officially, it means they have to start paying tax.

 

[Kirubel]

I think it depends on the system. Once a business has been registered officially, it means they have to start paying tax.

Yeah they will pay if they registered, but the thing is it is very hard for those who are new to the system and new entrepreneurs, since they don't make that much money paying tax will be hard for them.

 

[Kirubel]

Yes, in most cases, new entrepreneurs must pay taxes on their business income. Tax liabilities are determined by the business structure, income level, and local tax regulations. To optimize tax strategies and maintain legal compliance, entrepreneurs must understand and comply with tax legislation, file proper returns, and seek professional counsel. Some people find a way to avoid this which is bad.

Avoiding tax is not good thing, but those new business owners need to have some time to develop their business at list for two or three months in order to stand with their two feet.

 

[Suba]

When we want to build a business, some types of business must have a business license, patent, so you need to have a taxpayer identification number. As a new entrepreneur, you must make notes or financial statements, at least an income statement and balance sheet and tax calculations on business income. . If your business cannot make a profit then you are not subject to income tax, but you are required to make monthly reports.

 

[Kirubel]

When we want to build a business, some types of business must have a business license, patent, so you need to have a taxpayer identification number. As a new entrepreneur, you must make notes or financial statements, at least an income statement and balance sheet and tax calculations on business income. . If your business cannot make a profit then you are not subject to income tax, but you are required to make monthly reports.

See now that is a good thing, if a new business owner don't get profit from its new business letting them pass the tax payment till they get profit is a good thing and it will help them gain some strength.

 

[riberet19]

If countries want to stimulate the growth of new businesses and new entrepreneurs, then they should not pay taxes at least for the first years of business development, but this almost nowhere happens, at least as far as I know, in my country the self-employed pay too many taxes, so much that people lose the desire to undertake.

 

[Kirubel]

That would be a great idea, and that would be a big help for those who are developing a new business, and a big encouragement for them, since it is very hard to get profit for the first few month it would be better to give them some tax free time.

 

[Suba]

But if your business hires employees and there is a minimum taxable personal income and if your employees earn a salary of at least $300 (of course each country will be different), then you as an employer can deduct employee salaries according to the tax rates applicable in your country.

 

[eLdavis]

If countries want to stimulate the growth of new businesses and new entrepreneurs, then they should not pay taxes at least for the first years of business development, but this almost nowhere happens, at least as far as I know, in my country the self-employed pay too many taxes, so much that people lose the desire to undertake.

Yea, I think the best thing would be to give them time to grow the business or at least stabilize things first before they start worrying about paying tax.

 

[Kirubel]

But if your business hires employees and there is a minimum taxable personal income and if your employees earn a salary of at least $300 (of course each country will be different), then you as an employer can deduct employee salaries according to the tax rates applicable in your country.

It would help the business, but will the employees be cooperative and happy if we deduct a salary from them, because all they want is good payment and what if they leave the job.

 

[Suba]

It would help the business, but will the employees be cooperative and happy if we deduct a salary from them, because all they want is good payment and what if they leave the job.

Of course employees will understand the tax rules, so they will be willing if their income is above the minimum tax rate, tax will be deducted according to the applicable tax rate, so wherever they work they will also be treated the same.

 

[riberet19]

Yea, I think the best thing would be to give them time to grow the business or at least stabilize things first before they start worrying about paying tax.

Yes, but this does not seem to be the vision of most governments, those governments that have low taxes for the self-employed/entrepreneurs or no taxes on them are the ones that tend to grow the most economically.

 

[Suba]

So if you are a new entrepreneur, you don't need to be afraid of having to pay taxes, but you only need to cooperate with the government to report your financial activities. When I open a business, but before there are any financial activities or transactions, we can include a tax notification report with zero- zero.

 

[Kirubel]

Of course employees will understand the tax rules, so they will be willing if their income is above the minimum tax rate, tax will be deducted according to the applicable tax rate, so wherever they work they will also be treated the same.

That will be a good idea, both the business owner and the workers helping each other will help the new business to grow and to stand strong, if our works understand the situation and helps that is real trust.

 

[Nomad]

What makes you think that as a new entrepreneur, you should be exempted from paying taxes? However, I believe government should provide interest free loan or at least low interest loans for new entrepreneurs.

 

[Suba]

What makes you think that as a new entrepreneur, you should be exempted from paying taxes? However, I believe government should provide interest free loan or at least low interest loans for new entrepreneurs.

In my country there are only soft loans with low interest and flexible repayment terms, but for taxes, even though the business cannot make a profit, it must make a tax report, so the tax liability that must be paid will be zero.

 

[Kirubel]

What makes you think that as a new entrepreneur, you should be exempted from paying taxes? However, I believe government should provide interest free loan or at least low interest loans for new entrepreneurs.

Bing new to the business have a lots of challenges, and we know that new business owners don't get profit for few months and imaging paying tax even if you are not making a profit, that is a lose, even some times new business end up bankrupt and close their business due to being brock, so do you think that making new business owners pay tax since they start the business is a good idea.

 

[Augusta]

Yes, they should pay their taxes. They are making profit it isn't a charitable organization so they should.

 

[Suba]

Yes, they should pay their taxes. They are making profit it isn't a charitable organization so they should.

If business people must pay taxes, what if they suffer losses at the beginning of the year of their business operations. Do they owe taxes. Regardless of the tax regulations in your country, aid or donations to charitable organizations will also be taxed.