Selection Of Tax Saving Methods For Enterprises (1)

Tax revenue is closely related to various economic activities.

It is not only the main source of state revenue, but also an important economic lever for the state to implement macroeconomic regulation and control.

The purpose of the state is to make good use of tax levers to promote economic development. According to the economic development and changes, a series of preferential tax policies are promulgated in a timely manner to encourage economic development in a certain area.

Tax saving is exactly the preferential policy that taxpayers make full use of the tax laws and regulations. Through the reasonable choice of investment decision, management and accounting methods, we can achieve the purpose of reducing the tax burden of enterprises, and a legal means different from tax avoidance.

The author here introduces several tax saving options for reference.

1, choose the timing of investment. The government can formulate tax increase or tax reduction measures according to the economic situation of different periods to weaken the degree of economic fluctuation.

For example, in 1993, the introduction of fixed assets investment direction adjustment tax is expected to curb investment overheating.

The value added tax chooses the production type, that is, the purchase of fixed assets can not carry on the tax deduction, which not only contains the purpose of maintaining the stable growth of the financial revenue, but also restraining the overheating of investment.

Since July 1, 1999, 40% of the enterprises that have met the relevant requirements for the purchase of domestic equipment for technological pformation can be credited from the new enterprise income tax of the year of the enterprise technological pformation project than the previous year. The purpose is to curb deflation.

Therefore, enterprises should take the opportunity to decide the choice of investment so as to achieve the purpose of saving taxes.

2, choosing the investment location, whether domestic or pnational, business managers must seriously consider and make full use of tax differences in different regions and regional tax policies and preferential tax rates.

For example, China stipulates that enterprises newly established in revolutionary old base areas, ethnic minority areas, remote mountainous areas and poverty-stricken areas may be reduced or exempted from income tax for 3 years after approval by the competent tax authorities.

In the special economic zones, coastal open cities, high-tech enterprises approved by the State Council and the wholly foreign-owned enterprises invested in Pudong, the corporate income tax rate is generally 15%, while in other areas it is 33%.

Recently, the State Administration of Taxation issued a circular that enterprises with foreign investment encouraged by the state in 19 provinces, municipalities and autonomous regions in the central and western regions of China can levy corporate income tax at a reduced rate of 15% within 3 years after the expiration of the current preferential tax policies.

From a global perspective, some countries and regions do not collect corporate income tax, while in some countries and regions, the corporate income tax rate is as high as 15%.

3, choose the investment industry and industry to support and encourage the development of the third industry in accordance with the relevant tax laws.

Laws and regulations may be reduced or exempted from income tax.

For example, the income of rural areas for the production of antenatal, mid and post natal services, paid technical services or labor services, shall be exempted from income tax.

In order to encourage technological innovation and the development of new and high technology industries, the State Administration of Taxation and the Ministry of Finance issued a joint circular recently to implement a new policy of preferential taxation.

For example, a general taxpayer of value-added tax sells computer software products developed and produced by himself, which can be levied at a statutory tax rate of 6%.

A small taxpayer who is a small-scale manufacturer of production and sales shall calculate and pay value-added tax according to the rate of 6% collection. A small-scale taxpayer belonging to a commercial enterprise shall calculate and pay the value-added tax according to the rate of 4% collection, and the tax authorities shall, on the basis of different rates of levy, make a special invoice for value-added tax.

Income from units and individuals engaged in technology pfer, technology development business and related technical consultation and technical services shall be exempted from business tax.

For social forces, including enterprises, institutions, social organizations, individuals and individual industrial and commercial households, the funds for research and development of subsidized non scientific research institutions and institutions of higher learning to develop new products, new technologies and new technologies shall be deducted by the competent tax authorities, and their subsidy expenses can be deducted in full amount in the taxable income of the current year.

Enterprises that use "three wastes" (i.e. waste water, waste gas, waste residue) and other wastes as main raw materials for production can also be given tax exemption in accordance with the relevant tax regulations.