The Tax Compliance consists of outsourcing the service to a company that specializes in Accounting and Tax matters, in order to carry out the diligent compliance of the tax obligations that the company has through the service acquired, this allows the risks for contingencies with the Tax Administration to be mitigated.
The Tax Compliance is considered as a type of outsourcing or also known by its name in English as outsourcing at the business level.
It is important to highlight that nowadays it is common for companies to outsource certain activities that are not part of the Core Business, deriving such responsibility to a third party specialist in the matter, which allows the company to focus on its main activities so that such activities are those that generate value within their organizations.
Tax Compliance allows the company to organize and plan efficiently and effectively the due fulfillment of its tax obligations.
What are the benefits of acquiring the Tax Compliance Service?
Among the multiple benefits of acquiring the tax compliance service we have:
- Allows the organization to concentrate on its core business.
- It optimizes a company’s resources.
- It mitigates the risks derived from the noncompliance of tax and fiscal obligations.
- High degree of specialization in tax matters by the team in charge.
- Permanent and immediate updating of legal and regulatory changes in the field.
How could the tax compliance service favor when a company wants to enter a new territorial market?
When a company is in the process of territorial expansion, it must consider within its strategy the tax obligations that that country has, which on many occasions can be cumbersome and could distract from the company’s objective. Therefore, through the outsourcing of the tax compliance service, it is the responsibility of the company to comply with each of the tax obligations established by the tax authorities.
The company in charge of providing the Tax Compliance service organizes, plans and complies with each of the tax obligations, for which it designs a tax scheme according to the company’s objective, sector, size, among others.
Could it be beneficial to acquire the tax compliance service?
Yes, it is economically attractive since it mitigates the risk of generating fines for any failure to comply with any tax obligation established by the tax administration.
Likewise, the company in charge transfers a staff of professionals specialized in tax matters for the execution of the tasks and activities that allow the timely compliance of each of its tax obligations.