The Value Judgement Standard Of Tax Planning Effectiveness

The correct tax planning can not only make enterprises avoid paying taxes which should not be paid, reduce the cost of Taxation, but also help enterprises arrange their expenses reasonably, and improve the management of enterprises. But how can we improve the effectiveness of tax planning and really achieve "tax saving and income increase"?

First, there must be a set of basic criteria for value judgement.

According to the connotation and essence of tax planning, the effectiveness of tax planning can be judged by the following three basic criteria:

1, in line with tax laws and regulations.

Because the tax is mandatory, if it deviates from the tax compliance, the enterprise will be faced with tax related risks.

If you violate the tax law, that is, tax evasion is invalid in the legal sense, and may even be subject to legal sanctions.

Therefore, this is the most basic and indispensable standard to evaluate the effectiveness of tax planning.

2, comply with the principle of cost-effectiveness.

As a rational "economic man", any economic activity of an enterprise requires the benefits to outweigh the costs.

Tax planning activities are no exception.

The implementation of any plan has its dual nature. Taxpayers will pay for the implementation of the scheme at the same time of obtaining some tax benefits. These costs include all expenses or other losses caused by tax planning.

If the tax amount of tax planning can not make up for these expenditures and losses, then the tax planning is meaningless and therefore ineffective and undesirable.

3, in line with the strategic interests of enterprises.

Since tax planning is a long-term activity and pre planning activity, it needs long-term strategic vision. It should not only focus on the overall management decisions, but also combine with the development strategy of enterprises.

If it is confined to short-term and local interests without considering strategic interests, such planning activities are often ineffective, or ineffective.

If only the loan interest can be paid to the bank in large quantities at the forefront of the tax, the result will increase the cost of subsequent years and the risk of repayment.

Therefore, the correct orientation of tax planning is to take the overall interests and long-term interests as the emphasis, and put the planning activities into consideration in the overall management decision, taking into account the interests of all taxes and related stakeholders.

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Small scale taxpayers below the threshold of value added tax can temporarily continue to make invoices in the existing way.

The tax department will strengthen the work of making invoices for small-scale taxpayers, and further optimize the tax service so as to facilitate the production and operation of small-scale taxpayers.

The State Administration of Taxation issued a circular today that it is clear again that the small taxpayer who does not reach the threshold of value-added tax is not included in the new management system of VAT invoices.

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Measures such as tying equipment and software that are harmful to the interests of taxpayers should be taken seriously.

Goods and services of the General Administration of Taxation

In April 1st this year, the State Administration of Taxation has implemented the new system of VAT invoice management step by step throughout the country, and has implemented the source management of invoice information by network technology, fundamentally guaranteed the authenticity of the invoice itself and its contents, and realized the integrated management of VAT.

In implementing the new VAT invoice management system,

The cost of purchasing equipment and the technical maintenance fee paid are fully offset in the value added tax payable. Therefore, the implementation of the new invoice management system does not increase the burden on taxpayers.

"But small scale taxpayers have their own characteristics."

The person in charge explained that the small-scale taxpayers who did not reach the VAT threshold would not be able to offset the cost of the purchase of equipment and the technical maintenance fees due to temporarily waiver of VAT.

In order to avoid the implementation of a new invoice management system to increase the burden of small-scale taxpayers, the General Administration of Taxation requires tax departments at all levels not to include small taxpayers who do not achieve VAT threshold into the new system.