Franchising and taxes
Posted: Tue Dec 10, 2024 9:46 am
A wide selection of franchise companies and a varied entry threshold mean you have the chance to start with very little capital. If you have more of it, your freedom to choose industries increases, e.g. those that matter most to you.
Yes, yes. Only death and taxes are certain, so it is worth mentioning them when it comes to franchising. However, it is best to seek advice from a tax advisor who will help you choose the best way to run your business financially. It is not about avoiding taxes, but simply not getting milked.
The franchise agreement requires the morocco telemarketing regulation of tax issues. These include VAT and income tax, which should be settled according to the taxation rules applicable to license agreements.
In the case of income tax, the rules are similar to those for individuals and private individuals. As part of the business activity, some fees, such as the costs of concluding a contract, using know-how or contributing to a marketing fund, can be included in the costs of earning income.
Services provided under a franchise agreement are subject to a 23% VAT rate. However, the taxpayer has the right to reduce the amount of tax due by the amount of input tax, provided that they use the franchise goods and services to perform taxable activities.
A few words about risk
The franchisee receives the chance not only to run a company, but also to build an entire network under the banner of the franchisor's well-known brand. You also have the chance to run a business and choose from among the most well-known and widespread brands in the world. The rules of running a business require close cooperation and compliance with the franchisee's obligations, but this is a chance to develop a really impressive portfolio.
Do you know AmRest? If not, check your receipt the next time you visit KFC, Pizza Hit, Burger King or Starbucks. There is a good chance that you are in one of over 2,100 restaurants franchised by AmRest. Are you abroad? The company has locations in 21 countries. They are on a roll and you can be too, but know that it involves risk.
Yes, yes. Only death and taxes are certain, so it is worth mentioning them when it comes to franchising. However, it is best to seek advice from a tax advisor who will help you choose the best way to run your business financially. It is not about avoiding taxes, but simply not getting milked.
The franchise agreement requires the morocco telemarketing regulation of tax issues. These include VAT and income tax, which should be settled according to the taxation rules applicable to license agreements.
In the case of income tax, the rules are similar to those for individuals and private individuals. As part of the business activity, some fees, such as the costs of concluding a contract, using know-how or contributing to a marketing fund, can be included in the costs of earning income.
Services provided under a franchise agreement are subject to a 23% VAT rate. However, the taxpayer has the right to reduce the amount of tax due by the amount of input tax, provided that they use the franchise goods and services to perform taxable activities.
A few words about risk
The franchisee receives the chance not only to run a company, but also to build an entire network under the banner of the franchisor's well-known brand. You also have the chance to run a business and choose from among the most well-known and widespread brands in the world. The rules of running a business require close cooperation and compliance with the franchisee's obligations, but this is a chance to develop a really impressive portfolio.
Do you know AmRest? If not, check your receipt the next time you visit KFC, Pizza Hit, Burger King or Starbucks. There is a good chance that you are in one of over 2,100 restaurants franchised by AmRest. Are you abroad? The company has locations in 21 countries. They are on a roll and you can be too, but know that it involves risk.