Core Viewpoint - The article highlights four common pitfalls that individual business owners should be aware of to avoid penalties and ensure compliance with tax regulations [1]. Group 1: Common Pitfalls - Pitfall One: Improper Document Management Individual business owners must maintain proper accounting records if they meet the bookkeeping threshold. Failure to retain purchase documents can lead to significant tax liabilities, as demonstrated by a case where a business lost over 200,000 due to three years of missing invoices [2]. - Pitfall Two: Zero Reporting Does Not Mean No Reporting Many individual business owners mistakenly believe that having no income exempts them from tax reporting. However, even without taxable income, they are required to complete the reporting process. Failure to do so can result in penalties and affect credit ratings, as seen with a clothing store owner who faced tax recovery and fines after six months of non-reporting [2][3]. - Pitfall Three: Tax Exemption Does Not Mean No Oversight Individual business owners with monthly sales under 100,000 and quarterly sales under 300,000 can enjoy VAT exemptions, but this is contingent on timely reporting. In 2024, over 2,000 individual businesses lost their tax-exempt status due to non-reporting and had to pay back taxes [4]. - Pitfall Four: Late Annual Business Reporting Failing to submit annual business reports can lead to being listed in the "operating anomaly directory," which can impact loan eligibility and business opportunities. A hardware store missed out on a 3 million annual order due to not submitting its annual report [5]. Group 2: Additional Considerations - Individual business owners should ensure that their reported data aligns with invoicing data and that they submit reports on time to avoid penalties [5]. - There are various local support policies available for individual businesses, such as exemptions from VAT and personal income tax, but compliance with the aforementioned pitfalls is crucial to benefit from these policies [5].