Corporate Level Strategy: Tax Planning Methodology

(1) the domestic regional preferential tax policy gives tax planning space.

Taxpayers' tax burden varies from place to place in a given period.

For example, domestic and foreign enterprises still have a certain tax rate difference in the pitional period of the two legal systems. There are preferential tax rates to invest in the industries encouraged by the state in the western region.

It is possible to reduce the tax burden by making use of the changes provided by the labor force when the conditions permit, and, for example, the value-added tax is converted from production to consumption. Although it is a general trend to implement in the whole country, it is only now being tested in some provinces and cities in the northeast and central China, if the large scale equipment purchased by enterprises is relatively high.

By setting up business in these pilot areas, the taxable amount of VAT can be effectively reduced.

In addition, although China's tax law is unified throughout the country, the implicit tax cost difference caused by tax competition among different regions is also the investment decision making of enterprises.

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When a place in order to attract investment and expand the GDP cake, the local tax revenue is returned to the taxpayer in the form of various legal boundaries. The enterprise can take this part of the revenue as a reduction of tax cost for site selection.

(two) in the global operation, taxpayers vote with feet to choose the country of residence and host country to pay taxes.

In the public choice school, there is a famous theory of "voting by feet", that is, individuals can migrate to public goods to provide more favorable locations, so as to achieve the choice of government behavior.

The tax environment is a country's tax policy. For taxpayers, there are great differences between different countries and regions, which also have a great impact on taxpayers' after tax profits.

It is mainly reflected in the following aspects: first, the jurisdiction of Taxation includes the principle of "territoriality", "personal" principle, and the principle of "combination of territory and man"; the two is the establishment of tax categories; comparatively speaking, it should choose investment in countries with less taxes and simple and stable tax system; three, the tax rate is different from that of different countries.

The difference of nominal tax rate is widespread, and the difference of tax preferences also leads to the difference of actual tax rates. Four, tax administration, including the level of administration and fairness in taxation, and the ability of tax authorities to sign tax treaties and implement international cooperation.

(three) the advantage of "advantages" helps to integrate the common interests of different branches.

By setting up upstream enterprises in low tax areas and setting up downstream enterprises in high tax areas, pfer prices can be pferred between related enterprises. If the price of internal paction is set higher or the relevant cost is arranged in enterprises with high tax area, the overall tax burden of enterprise groups will be reduced.

By setting up R & D centers in preferential zones for the science and technology industry and setting up financial companies in preferential financial industries, they can legally and effectively reduce tax costs.

It is true that the current preferential tax policy in China is gradually shifting from regional preferences to industrial preferences, making the scope of domestic regional choices more limited. This requires taxpayers to expand their global vision, implement the "going out" strategy and engage in offshore business activities in order to find a reasonable and reasonable way to avoid tax.

As a category of enterprise strategy, tax planning should focus not only on tax payment but also on the maximization of related income, opportunity, risk and cost, so as to achieve the maximum goal of "net income", "social effect" and "enterprise value" of taxpayers.

The "foresight" and "advance" of tax planning are particularly important in the entrepreneurial process.

The enterprise strategy covers two perspectives of corporate strategy and business level strategy. The tax planning of the tax payers is obviously a more macro corporate level strategy.

How to prepare for the rainy day and seize the opportunity is that every quasi taxpayer must be considered and analyzed before it is formally registered and becomes the subject of tax payment.