The importance of tax planning for providers (ISP)

We're back to raining in the wet. That is, talking about the importance of tax planning for providers (ISP) , in fact, is another truism. However, it's like Clarice Lispector's phrase, in A Learning or the Book of Pleasures : “ the obvious is the most difficult truth to see” .

After all, owners and managers of internet service providers (ISP) know very well ( or should know! ) that the financial viability and economic sustainability of the internet service provider (ISP) business model depend greatly on tax optimization. that the Value Added Service (SVA) provides .

You've probably already read this in some of our articles about SVA for internet providers. However, it is always good to emphasize that a large part of ISPs' profits derive from SVAs . A fact that proves the importance of tax planning for providers (ISP).

And, above all, it demonstrates the greatest of the many benefits of any SVA for ISPs : that tax planning for providers is fundamental and is based on the strategic utility of SVAs for internet providers .

Tax planning for providers and SVA

Before we continue with more information about the importance of tax planning for ISPs, I would like to do as the famous English-Indian writer George Orwell did: “ restate the obvious” and highlight the importance of SVAs for ISPs .

Experienced entrepreneurs and ISP managers certainly understand the real dimension and importance of value-added services for their business model .

That's why, on the lumin blog , we've been presenting articles about advantages and benefits and the relevance of SVAs for internet providers .

Without a doubt, knowledge and information are essential to improve the management of ISPs. And, as a result, generate more profit, security and control of the internet provider business .

If you missed any of the most recent and relevant content about the strategic value of an SVA for an internet provider , before we see more about the importance of tax planning for providers, take a look at our blog:

Tax planning for providers

When it comes to tax planning for internet providers, there is no way around SVAs . After all, they do not pay ICMS and mean a large tax reduction.

According to tax planning for providers, they can mean between 20% and 50% less, just in ICMS.

Undeniably, tax savings through SVA for providers are more than relevant to increasing the profitability of ISPs.

So, when reducing the tax burden and improving profitability and profitability are the focus, SVAs for internet providers are certainly indispensable!

Surprisingly, market data indicates that the vast majority of ISP owners and managers are unaware of the advantages and benefits of SVA solutions for internet providers .

Watch this video by Stanley Sousa , accountant responsible for Contare Contabilidade – Soluções Contábeis & Empresariais.

In four minutes, see what he says about the importance of tax planning for providers and how the vast majority of his clients paid more taxes than they needed or owed .

The Lebanese poet and philosopher Khalil Gibran once said: “ the obvious is what no one sees, until someone expresses it simply” .

That's why we insist on reinforcing the strategic obligation of SVAs to tax planning for providers .

good AVS solutions for internet providers needs to be clear .

However, other strategies and financial and economic particularities of internet providers can also contribute to further maximizing the results of tax planning for providers .

Tax planning for providers goes beyond SVA for internet providers

Anyone who really knows the internet service provider (ISP) business knows very well that more SVA means less tax .

In fact, you know even more: that tax planning for providers goes far beyond SVA for ISPs .

The large tax reduction that an SVA for internet providers provides is necessary and strategic . However, good tax planning for providers must advance and guarantee even more tax savings .

As a result of these tax savings, we have the great quality and benefit of VAS for internet providers: increasing the profitability of internet providers .

It's as simple as this: the more SVAs, the less taxes and the more profit.

This is why value-added services like Lumiun ISP are so important to the ISP business model.

Tax Avoidance and tax planning for providers

The importance of good tax planning for internet providers (ISP) is, mainly, to make the most of the incentives offered by the General Telecommunications Law ( No. 9,472/1997 ) .

In other words, in a simplified way, tax planning for providers must find legal ways to pay all taxes, but as little as possible and in the most advantageous way possible .

In other words, technically, tax planning for providers seeks to reduce the tax burden by omitting the tax generating factor . This practice and strategy has a name, it’s called tax avoidance .

Basically, among the three main most common measures when talking about tax planning for providers and tax avoidance, in two we have the advantages and benefits of SVAs for ISPs .

By reducing the tax burden, the tax avoidance strategy adopts measures such as:

reduce the tax calculation base (SVA for provider),
Avoid the incidence of the tax generating factor (SVA for provider),
extend deadlines and postpone tax payments, without fines.

In addition to tax avoidance, tax planning also addresses issues such as:

the rate applicable in each state,
the qualification of ISP management,
of good SVA solutions for internet providers, and
maximize tax planning results for providers.

Tax planning tips for providers

#1 Information and self-knowledge are essential

Knowing your company and your business is the obligation of every internet provider entrepreneur. But, mainly, from ISP managers. Knowing exactly the economic, financial, fiscal and operational situation of the provider is a sine qua non for the success of any management process.

#2 Professionalize tax planning for providers

Again, it seems obvious that tax professionals specialized in ISPs are better able to carry out tax planning for providers. Unless your provider has lawyers and accountants who specialize in tax avoidance for ISPs. Otherwise, don't fall into the trap of trying to save money or create a tax savings strategy on your own . Hire experienced and trusted professionals to share your information and build good strategic planning for providers.

#3 Tax avoidance is not evasion

There are many exceptions provided for in the Law and Regulations. Don't fall into the temptation of excess. After all, good tax planning for providers is about saving on paying taxes in the short, medium and long term. That is, depending on your objectives and goals and the many variables involved, different strategies may be appropriate. This is why tax planning is important for professional, reliable and experienced providers. It is often strategic not to exceed or abuse avoidance, under penalty of appearing to be tax evasion... An important precaution, especially when we know about the fiscal voracity of the Brazilian state, in all spheres.

#4 How to pay directors

In addition to SVA for internet providers, the remuneration of owners, partners and directors is a relevant issue to be considered. Typically, the suggestion is to change the payment method from pro-labore to profit withdrawal . Thus, in the tax avoidance process, good tax planning for providers saves company resources allocated to IRPF and INSS, for example.

#5 Restate the obvious: the importance of VAS for ISPs

It couldn't be any different. As much as other strategies can and should be the focus of good tax planning for providers, SVAs for internet providers are unbeatable . After all, they are exempt from paying ICMS, the tax that most impacts ISPs. Ultimately, the tax optimization that the Value Added Service (SVA) provides is often what makes viable and supports the providers' business model. of internet.

A good SVA solution for internet providers

Lumiun ISP is an SVA (Value Added Service) that, undeniably, generates competitive advantage , differences and benefits for internet providers and their customers.

The DNS filter in SVA format for Lumiun ISP was developed to offer more security and control over the subscriber's internet and increase the profitability of providers (ISP).

In conclusion, the SVA for Lumiun ISP is a solution that delivers a lot of quality, innovation and great benefits . After all, it was developed to generate competitive advantages and strategic differences: