Interpretation Of Decision Making Methods In Tax Planning

Tax planning is to achieve the lowest tax burden and maximize the profit after tax by making decisions beforehand.

In tax planning, how to make decisions and choose the appropriate planning plan directly determines the results of tax planning.

From the above cases, we can find that there are many ways to choose the tax planning scheme.

1. compare the cash flow of different schemes.

In essence, tax planning is a kind of financial activity. We can use the management paper "target=" _blank "> the comparative cash flow method in financial management to make tax planning decisions.

The two option is to pay 5200 yuan for water and electricity and 804 yuan for value-added tax.

Scheme 1 related cash flows are: payment of business tax 7500 yuan, collection of rent 150000 yuan; scheme 2 related cash flow: collect rent 142400 yuan, resale water charge 4800 yuan, resale electricity charge 2800 yuan, resell water and electricity collect value added tax 1180 yuan, pay value added tax 376 yuan, pay business tax 7120 yuan.

Two the difference in cash flow is (142400+4800+2800+1180 - 376 - 7120) - (150000 - 7500) =1184 yuan.

The comparative cash flow method is the basic decision-making method in the discipline of financial management. Its logic is the most rigorous and the most comprehensive method is taking into account all kinds of factors.

2. compare different options.

。

The income of scheme 1 is 150000 yuan of rental income; the related expenses include business tax, the cost of water and electricity 5200 yuan, and the value added tax 804 that can not be deducted from the purchase of water and electricity. The total value is 13504 yuan, and the profit is 150000 to 13504=136496 yuan.

The income of scheme 2 is 142400 yuan for rent, 7600 yuan for resale hydroelectricity and a total of 150000 yuan. The VAT can be deducted without affecting the profit and loss, so the cost is 7120 yuan for business tax, 5200 yuan for purchasing hydropower and a total of 12320 yuan, and the profit is 150000 to 12320=137680 yuan.

The difference between the two schemes is 1184 yuan, which is the same as the above conclusion.

We should pay attention to two problems when applying the comparative accounting profit method.

The difference between the accounting profit and the cash flow of the 2.1 scheme is due to the value added tax.

The VAT collected by the taxpayers selling goods does not constitute their income, and the VAT payable when purchasing the goods does not belong.

。

This is the unique tax system of VAT.

Pay attention to tax planning.

2.2 in this case, when calculating accounting profits, other expenses such as depreciation are not taken into account. Only the expenses related to decisions are considered. The accounting profits here are not accounting profits in a complete sense. Therefore, this decision method can only be used for decision making, but the theory is not rigorous.

3. compare the tax amount of different schemes.

This is the most widely used method in tax planning decision making.

It has been calculated that the difference between the two schemes in this case is 4 yuan.

But the disadvantage of this method is not considering other factors, especially the factors that affect the cash flow.

So this method applies to all other aspects, and only when the tax is paid differently.