Tax Exemption

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Published on: October 17, 2015

The tax exemption is the practice to use the model of businesses of another person. The tax exemption is a word of anglian-French derivation – of Franc- so much is used as a noun or as verb (transient). A tax exemption is an agreement between the franchisor and the adressee ” franquicia”. It has two elements important so that the payments are realised to a franchisor – the trade name, that the franchisor distinguishes, and the formation distributed to the franchise-holders. The franchisor receives an exemption by the trade name and a rate of formation and advising.

The tax exemption is, generally, by a certain period and it occurs by ” territorio”. It can be an exclusive or nonexclusive tax exemption. Several tangible and intangible ones, such as national or international services of support of publicity, formation, and others are made available commonly by the franchisor. The agreements usually last between five to thirty years, with the cancellation or premature completion of the majority of contracts, with serious consequences for the franchise-holders. The tax exemption has existed by many centuries, but did not arrive at the fame until the decade of 1930 in the United States, when the establishment of the electricity, the vehicles and, in the decade of 1950, the system of the inter-state freeway helped to impel modern of tax exemptions, especially the tax exemption based on foods logistics facilities. According to the Association the International of Tax exemptions approximately 4% of all the businesses in the United States are tax exemptions.

AS THEY ARE THE ADVANTAGES OF THE TAX EXEMPTIONS? In agreement with the administration of small businesses of the United States, the tax exemption has several advantages on the independent retailers. They are: Reputation: it is a system of licenses established and well well-known, the new concessionaire does not have to work to establish the reputation of the company/signature. The product or service that is offered already is accepted by the public. Capital of work: less money costs to operate a concession business, because the franchisor gives to the concessionaire good controls of inventory and other average ones him to reduce the expenses. When it is necessary, the franchisor can also give financial attendance for the operative expenses. Experience: the advice given by the franchisor compensates the inexperience of the new proprietor. Managemental attendance: the proprietor of a small independent warehouse must learn of everything, and an experienced retailer can not be a teacher in all the aspects of finances, statistics, marketing and promotion of sales. The best companies of tax exemption give him to the concessionary continuous attendance in these areas. Utilities: when assuming reasonable costs of tax exemption and agreements on provisions, the concessionaire usually can wait for a reasonable margin of gains, because the business is handled with the efficiency of chains. Motivation: because the concessionaire and the franchisor benefit from the success of the operation, both work suitably to obtain it.

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