For freelancers and small business owners, half-year tax returns (PND 94) are very important. This is because the first half of the year's income is included in the tax calculation to reduce the burden of full-year tax returns. We allow you to make the following suggestions:
1. Collect complete income and expense information.
Freelancers and small business owners should keep complete records of all income earned between January 1 and June 30. Whether it's income from the sale of products, services, or other income.
In addition, records should be kept of business-related expenses such as supplies and equipment. Office rent and other expenses can be deducted as costs.
2. Accurately calculate net profit.
Net income = Gross income - Deductible expenses
For freelancers or businesses with lump sum deductions. You should research which lump sum formula your income falls into. And deduct expenses correctly as required by law.
3. Check the types of deductions available.
There are several types of income deductions you can take, such as a self-deduction, a child deduction, and a life/health insurance premium deduction.
Freelancers and business owners should review all available deductions to pay the least amount of tax.
4. File your taxes using the online system.
The tax office has an online system that makes it quick and easy to file your half-year tax return, reducing the hassle of filing it yourself.
The tax office's website offers a quick and easy way to file Form PND 94. Simply fill in your income, expenses and deductions.
5. Check your tax returns .
PND 94 must be submitted by September 30th of each year. (First half income)
Late submissions will incur penalties, so you should prepare in advance and submit on time.
6. If you are unsure, consult an expert.
If you are unsure about the tax calculation or filing process you should consult an accountant or tax professional to ensure your filing is legal and avoid future tax problems.
7. Keep the documents for inspection.
After you file your tax return, you should keep evidence of your income and expenses. This includes receipts for filing your tax forms in case you are audited by the IRS in the future.
Proper preparation and planning of half-year tax returns will help freelancers and small business owners effectively reduce the hassle of managing taxes at the end of the year.
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