Hidden Tax Advantages of Contracting or Outsourcing Software & Mobile Application Development

In today’s business environment, contracting or outsourcing software and mobile application development is becoming increasingly popular. With the rise of the gig economy, businesses are taking advantage of the cost savings and flexibility that come with outsourcing software and mobile app development. While we have already covered the benefits of outsourcing and how to do it properly, there are actually additional hidden benefits of contracting or outsourcing software and mobile application development from a tax perspective.

What are the Hidden Tax Benefits of Outsourcing Software/Mobile App Development to an Agency?

1. it can help businesses save money on taxes. By outsourcing development, businesses can reduce their taxable income by not having to pay for employee wages, insurance, and other employee-related costs.
2. Businesses can benefit from tax savings if the contractor is located in a jurisdiction with lower tax rates than the business itself.
3. Another benefit of contracting or outsourcing software and mobile application development from a tax perspective is the ability to take advantage of tax incentives. Many jurisdictions offer tax breaks to businesses that outsource their software and mobile application development projects, such as deductions or credits for R&D expenses. This can help businesses save money on taxes and free up more funds for other areas of their business.
4. Finally, contracting or outsourcing software and mobile application development can help businesses avoid double taxation. By outsourcing development, businesses can avoid having to pay taxes on the same income twice, as they would if they hired an employee. This can help businesses save money on taxes and can help them stay competitive in the marketplace.

Overall, contracting or outsourcing software and mobile application development can be beneficial from a tax perspective. It can help businesses save money on taxes, take advantage of tax incentives, and avoid double taxation. For businesses looking to reduce their taxable income and free up more funding for their operations, contracting or outsourcing software and mobile application development can be a great option.

Save More Than Just Taxes?

Aside from tax benefits, outsourcing your development work to an experienced and skilled agency will allow you to reduce your overall development cost while tripling the output. Allowing your team to focus on the important tasks of managing the growth of your business.

Valere is an award-winning software/mobile development agency specializing in outsourcing development implementations for Startups and Fortune 500 companies alike

Valere has been the partner for companies looking to outsource their development work since 2017. The team offers their clients a unique people-as-service approach which sees them providing a dedicated engineer that can work during their clients’ hours full time.

They have done this model with other startups and have been extremely successful, company feels as though they are part of their team and culture (even helping them achieve further funding or get acquired). Contact them today to see how they can help you maximize your returns for your development needs.

Valere is an award-winning software development agency that has built over 300 top-rated applications for startups and Fortune 500 companies in all verticals like healthcare, finance, sports, fitness, education, and more. Their apps have been featured by the New York Times, and have been consistently recognized as Apple App Store’s top featured apps, TechRadar, and Google Play Store’s top featured apps! Schedule a call with us today to learn how we can help your team create the perfect software or application that can Accelerate Your Business Goals!