The Application Of Tax Planning In Financial Management

With the continuous improvement and development of the domestic tax collection and management system, tax planning has attracted more and more attention in various aspects such as production, operation, management and accounting. Through the application of tax planning in the two aspects of enterprise financial management and accounting, this paper reveals how enterprises can make use of the relevant provisions of the state tax law to carry out tax planning, reasonably and legally realize the minimum tax burden, reduce operating costs, improve economic efficiency, and enhance the development potential and market competitiveness of enterprises.

The goal of tax planning is to maximize the tax benefits of taxpayers. The so-called "maximization of tax benefits" includes the lightest tax burden, maximizing profit after tax and maximizing enterprise value, not only the lightest tax burden. Tax planning is closely related to financial management. This is because tax planning can reduce expenditure and raise the utilization ratio of funds, thus achieving the goal of maximizing after tax profits in financial management. The application of tax planning in enterprise financial management is mainly in the use of financing decisions, investment decisions and profit distribution.

Enterprises should carry out production. Management And gray investment activities, we need to raise a certain amount of funds. The way of raising funds usually includes self accumulating funds, loans to financial institutions, mutual borrowing and financing among enterprises, and raising funds through society such as issuing stocks and bonds. At present, there are two kinds of financing channels: one is borrowing capital, the other is equity capital.

Different financing methods bring different tax burden to enterprises, and different financing channels will also bring different effects. Borrowing capital and equity funds are applicable to different methods of payment when calculating enterprise income tax. If the cost of equity capital is dividend, and the dividend tax law provides for payment after tax, the cost of its capital use is higher. The borrowing cost is interest, and the interest can be included in the financial cost. At the same time, it can be deducted before the enterprise income tax, so as to reduce the cost of capital use and maximize the earnings per share.

Tax laws generally stipulate that the loan interest expense of a company can be deducted within a certain range before the income tax. dividend It belongs to the category of profit distribution and must not be deducted before tax. If we consider only from the perspective of tax saving, mutual financing between financial institutions and enterprises is better than that of enterprises' self accumulation and financing to the public. Among them, the inter bank lending has greater flexibility in terms of interest rate and payback period, which can play a regulatory role at that time. However, the tax law restricts the interest deduction standard. For example, the enterprise income tax stipulates that "during the period of production and operation, the taxpayers' interest payments to the financial institutions are deducted according to the actual number, and the interest payments to the non-financial institutions are not higher than those calculated according to the financial institutions' similar interest rate and the loan interest rate of the same period." Therefore, if enterprises artificially raise interest rates in capital lending activities, they can not achieve the lowest tax burden and are not effective tax planning.

Therefore, when financing enterprises, we must rationally determine the financing channels, scientifically plan the financing ratio and capital structure, so as to ensure the realization of maximum profit after bonded. Under the premise that the rate of investment before interest tax is greater than the cost of debt, the higher the debt ratio, the greater the amount. Tax saving The effect is more obvious. Of course, the higher the debt ratio is, the better. With the increase of debt ratio, the financial risk and financing cost of enterprises will increase. When the cost of debt exceeds the rate of investment before interest tax, liabilities can not achieve the purpose of tax saving. For enterprises, when raising funds, they should not simply choose what kind of financing they should choose from the cost of capital. They should also consider factors such as return on investment, tax and market risk, and then decide a reasonable capital structure. The enterprise can achieve the purpose of tax saving through financial accounting's financing decisions without violating the national economic policy and guidance.