How Do Smart Entrepreneurs Tax Their Taxes Legally?

For small and medium-sized enterprises, especially more and more start-ups, paying taxes is often a difficult problem.

Even though I've heard many tax saving plans, I don't know which way to go and which way to go.

In fact, tax saving planning is a layer of window paper, and it is not difficult to poke it out.

A smart manager should consider how to save taxes before the company is set up.

More than one tax expert said that the domestic tax saving space is relatively limited. China takes the corporate tax as the focus of Taxation, so the tax saving space of enterprises is larger.

Then, how much tax burden can we save by starting with the state related preferential policies?

The difference between tax evasion, tax avoidance and tax saving:

It is self-evident that "tax evasion" is a violation of the law, and it should be punished and punished like tax evasion.

Tax avoidance is suspected of drilling loopholes.

Only "tax saving" can be considered to be in line with the guidance of the national policy and even the tax policy. It is also called tax planning.

The industry has different tax rates.

Before investing, we should carefully consider the type of investment industry.

The state has different tax policies for different types of industries.

The Provisional Regulations on business tax provide that the following institutions can enjoy tax reduction and exemption:

1, nurseries, matrimonial services and other services provided by nurseries, kindergartens, nursing homes and welfare institutions for the disabled;

2. Personal services provided by disabled persons;

3, medical services provided by hospitals, clinics and other medical institutions;

4, civil welfare enterprises and waste materials recycling enterprises in line with the state regulations;

5. High and new technology enterprises that meet the requirements of the state;

6, qualified third industrial enterprises, waste residue, waste water and waste gas as the main raw material production enterprises;

7. The welfare production enterprises and township enterprises of factories, farms and civil affairs departments run by schools run by the educational departments.

Different local preferences

Choosing the location of an enterprise is also very knowledgeable. It can choose investment areas that are encouraged by the state's preferential policies to invest.

For example, the Pearl River, Xiamen, Shanghai, Pudong and so on, the tax rate in such areas is only 15%.

In addition, in order to attract investment, some towns have similar preferential local regulations to reduce tax rates.

This requires investors to consult with the local government in order to maximize local subsidies and reduce tax rates.

Investment mode affects tax policy

The mode of investment refers to the way investors invest.

Generally include spot investment, tangible assets investment and so on.

If you are prepared to invest in your own house, you can choose between the way of collecting rent and participating in the business dividends by physical investment, and compare which way will obviously reduce the tax burden.

Generally speaking, the business property tax is levied on the annual value of 1.2% of the remaining value of the house. The remaining value of the house is calculated and paid according to the balance of the original value of the property minus 10% to 30%; the rental property tax is levied on the basis of 12% of the rental income.

1, adopt the way of collecting rent: the rent paid by the enterprise is included in the cost of operation as the cost, the taxable income is reduced, the amount of year-end dividends is reduced, the tax burden on enterprises and the personal income tax are reduced.

But rental income is subject to business tax.

Some experts suggest that when engaging in partnership with others, the way of collecting rent is more sensible than that of housing.

2, take the way of housing price participation: according to the above analysis, enterprise income tax and personal income tax will increase more than the above way, but do not pay rent business tax.

If we choose cash direct investment, then the way of bank loan can also achieve the purpose of saving taxes.

According to the state regulations, the investment in the technological pformation projects that are encouraged by the state or in line with the state's industrial policies can be exempted from the enterprise income tax by 40% in proportion to its own funds or bank loans.

Assuming that there is a Sino foreign joint venture project, the contract requires the Chinese side to provide factories, office buildings and land use rights, while the Chinese side has no ready office buildings to provide. At this time, Chinese enterprises are faced with two choices: one is to invest in the construction of office buildings by Chinese enterprises, and then to provide joint ventures for use. The result is that Chinese enterprises should pay tax on fixed assets investment in addition to the investment in building office buildings.

The two is that the Chinese enterprises should invest the funds equivalent to the construction of the building into the joint venture, and then build the office buildings in the name of the joint venture.

Different employees can also save taxes.

CEO, Mr Lee Chi Kee, China tax planning network, gave a question to the finance manager attending the meeting at the annual meeting of the first Chinese financial manager held last year. The annual sales volume of a 10 person management consulting firm is estimated to be 10 million yuan. According to the normal situation, it should pay about 800 thousand yuan of business tax. How can we make a tax of one cent and not violate the tax law?

He said that as long as the familiar tax law is good at planning, there are two ways to make the company exempt from 800 thousand yuan tax:

1, according to the regulations: newly established service enterprises, who arrange unemployment and laid-off workers to 30%, can be exempt from three years of business tax and income tax.

This policy looks very simple, but very practical.

The company can arrange two laid-off women working canteens, and arrange for an unemployed or laid off leader to drive, so that the 800 thousand yuan tax will not be paid.

2, 2004, the new tax policy stipulates that a private enterprise that arranges a 30% percentage of retired officers can be exempt from three years of business tax and income tax.

The company can recruit a retired male soldier to drive, recruit two female soldiers to be secretaries and telephone operators, and also achieve the purpose of saving taxes.

In view of this, as long as we are good at using the preferential policies of the state, it is not difficult to achieve a reasonable tax saving. It is not wise to risk tax evasion at a great risk.

A wise financial man gives up the other and takes only one tax saving plan.