the company's image damaged in the eyes of its partners?

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The answer is yes: labor debts can affect the company's image both in the market and among its partners.

Organizations that do not comply with their labor obligations are seen as unreliable and may lose credibility with customers, suppliers and investors.

In other words, all of this can lead to partners leaving the company if they notice that it is accumulating debts with employees, because by leaving the company, they avoid being held responsible for paying them.

3. How to comply with labor debts?

To avoid all these problems, it is ideal to comply with the gambling data saudi arabia law and pay employees what they are entitled to on time.

This means that the company must pay salaries on time, grant vacations and thirteenth salary, correctly collect FGTS and other contributions, among other obligations.

It is important to highlight that the approved text foresees the possibility of credit for CBS and IBS incident in the previous stages of the chain, which theoretically could result in a reduction in the effective rate of these new taxes and the increase suggested above.

Taking credit
However, the biggest obstacle to Tax Reform in the services sector is precisely the lack of production stages, as occurs in industry, for example. The services sector is at the final stage of economic activity, which in itself limits the possibility of using credits, especially for services intended for the end consumer.

At this final stage of the chain, there is difficulty in fully passing on the tax cost, which may lead to the absorption of part of this increase in tax burden and, consequently, a reduction in the profit margin.

Furthermore, the driving force of the service sector is labor, not inputs in general. This labor cost is not eligible for credit, which significantly impacts the sector in question. By unifying taxes in a broad and indiscriminate manner, tax reform in the service sector naturally negatively affects the sector compared to others.

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Furthermore, the company must maintain good communication with employees, clarifying what their rights are and how the company is fulfilling its obligations.