Financial Management and Tax Administration of Companies Construction Industry

Abstract

The construction industry is considered as one of the main drivers of the country’s economy, which contributes with a large percentage of the gross domestic product. Currently, it is one of the most affected sectors at both the national and state level.

This article shows the several ways of obtaining resources for real estate developments, requirements, minimum necessary conditions, as well as the key characteristics of project financing and current rates, in addition to the different forms of capital and interest payments within the construction period and commercialization of such.

Regarding federal contributions, there are more and more rules to comply within them, from the moment of taxable income, as well as the application of the corresponding deductions.

It is concluded that the tax treatment in terms of Income Tax for this type of taxpayers has its advantages in terms of cash flow, since it is possible for the taxpayer to capitalize monetary resources the during the construction time, so that they can pay taxes until they have the resources to do so and not before, as normally happens among other legal entities that are not engaged within this industry.