Two Ways To Raise Taxes And Raise Taxes

A fan factory is a collective enterprise mainly based on the production of cool fans.

In recent years, due to the tight funds of the company and the serious arrears of loans, the factory's products can not be recovered in time, which leads to the lingering production of enterprises and the failure of the output of products, which jeopardize the future development of enterprises.

According to the current situation and the new development plan, financial personnel put forward three ways of raising funds for decision-making of factory leaders.

The new plan is as follows: to increase the output of products, the newly developed products are mass produced, and the cost of materials, equipment and labor costs is about 5 million 950 thousand yuan.

The fund-raising methods are as follows: (1) bank loans, enterprises are in urgent need of funds and can be negotiated with banks. The loan interest rate at the end of last year is 9.2%, and the financing rate is estimated at 1%. After that, the loan interest rate may increase and the income tax rate of the enterprise is 33%.

(two) the stock raising fund, because of the high reputation of product quality, has a good foundation for issuing shares, and can issue common shares, and the rate of raising funds is 4%.

The victory of common stock is not fixed. It is assumed that the stock interest rate of the year of issue is 12%, and the future will be determined according to the operation of the enterprise.

(three) joint operation fund raising suggests that the factory should be the main body.

Joint operation with several enterprises with certain production equipment foundation.

In this way, the new products produced by our factory can be produced in batches by using the site, labor, equipment and resources of the member factories, thus forming the specialized production capacity of fan Liang fan, which can ensure the steady growth of the enterprises.

In the face of three possible ways of raising capital, how can enterprises reduce their capital costs through tax saving?

For any enterprise, financing is a prerequisite for a series of business activities.

However, how to raise funds and how to make the fundraising achieve maximum benefits?

From the point of view of Taxation, the results of tax from different financing methods are quite different.

The use of certain forms of financing can effectively help enterprises to reduce tax burden and get tax benefits.

From the point of view, the three ways of financing have their capital cost, and the way of bank loan financing is effective because the interest is paid before tax, so the cost of capital is 6.23%.

And the way of stock raising is that the capital cost is 15.63%.

The last way to raise capital is to raise funds through joint operations. There are two cases. First, the establishment of a joint entity, then the cost of capital is the total profit of the joint venture and the total amount of investment by the joint venture. Two, when the joint venture is produced for only one project, the cost of capital is the ratio of the total profits and profits of the joint venture.

Obviously, these two situations will lead to an increase in the cost of capital and the most in the three choice.

Comparing three possible ways of raising funds, the cost of loans is the lowest, because taxpayers can effectively reduce their own capital costs through pre tax payment of interest.

For taxpayers, the reduction of capital cost will improve their production and operation ability and competitiveness in the market, and improve their final profit level.

Comment: there are great differences in tax outcomes arising from different ways of financing.

This case gives us inspiration, because it can not be long enough to raise funds through loans.

In addition, the investment organization must bear certain taxes after the profits have been generated. That is to say, after the interest is returned, the profits of the enterprises will be reduced, especially the pre tax repayment. Its essence is to repay the loan with financial money, so the actual tax burden of the enterprises has been greatly reduced.

Therefore, using loans to engage in production and business activities is a way to lighten the tax burden and avoid some taxes reasonably.

In the actual fund-raising activities, enterprises can consider their possible ways of financing according to the actual situation, and compare various ways of financing to determine the most favorable way of financing.

Generally speaking, the financing of enterprises involves repayment of principal and interest.

So it involves how to calculate the cost and how to put all the related costs into the cost.

The key to effective tax avoidance and to reduce operating costs is to use interest to invest in different ways of cost and the relationship between capital flows to the two parties and the status of their economic activities.

In addition, with the diversification of financial institutions in China, there may be a similar situation between enterprises and banks between enterprises and enterprises. That is to say, enterprises and institutions have reached some agreement, raising interest rates by financial institutions, increasing the interest of enterprises in the cost, which will greatly reduce the tax burden of enterprises.

At the same time, financial institutions will, in some form, return high interest to enterprises or provide guarantees and loans to enterprises in a more convenient form, and include other financial services.

This situation has a trend of further expansion and is largely legal. Enterprises can reduce their own capital costs and strive for greater profits, thereby strengthening their competitive position.