Tax planning is not tax evasion, but legality should be considered when tax planning is carried out.

Tax planning is usually legal and compliant, and can be carried out in the following ways:

I. Transfer pricing

Take advantage of different tax rates in different registered places (not necessarily different countries, but also tax preferential areas) to transfer the profits of taxpayers with high tax rates to taxpayers with low tax rates through transactions.

Because transfer pricing is a common planning method, the tax bureau requires enterprises of a certain scale to provide transfer pricing information for the record.

Second, the weakening of capital.

Change equity income into creditor's rights income, increase pre-tax deduction by increasing loans (debt financing) and reducing the proportion of equity (equity financing), and reduce corporate tax burden.

Third, tax incentives.

You can also take advantage of local tax incentives.

Rational application of preferential tax policies for headquarters economy. At present, many parts of the country are attracting investment through the form of headquarters economic tax policy. Enterprises only need to register in the local area, and they can enjoy the financial support of the local government in taxation.

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Proportion of financial support of limited company: According to the annual tax payment, the enterprise can get the support reward of value-added tax retained by local finance and enterprise income tax: 75%-85%.

Redemption time: the support reward can be cashed in the next month after tax payment.

Settlement form: According to the actual situation and the requirements of tax areas, you can set up branches, new companies or relocate your registered place.

2. Wholly-owned enterprises

Advantages of sole proprietorship enterprises

The invoice is true, the funds are safe and the risk is low.

After applying for "approved collection", the overall tax burden will be reduced.

The taxes involved in a sole proprietorship enterprise can be directly transferred to private enterprises after paying taxes.

If there is no enterprise income tax, individual income tax shall be paid according to the income from individual production and operation.

Generally, a sole proprietorship enterprise can outsource its business to a "studio" through business diversion, and the person in charge can legally issue invoices and settle expenses by setting up a sole proprietorship enterprise in a tax depression. After paying taxes, you can freely withdraw cash and distribute it freely. The comprehensive tax rate approved by a sole proprietorship enterprise is as low as 1.54%.

Four. tax convention

Refers to a written agreement reached by two or more sovereign countries through consultation to coordinate tax jurisdiction and deal with related tax issues. Countries that sign tax treaties with each other usually include parts such as avoiding double taxation and tax incentives. Compared with countries that have not signed tax treaties, signing tax treaties can effectively reduce double taxation and reduce corporate tax burden.

Five, mixed mismatch

For mixed financial instruments, it is most common to regard them as creditor's rights in one country and equity in another. This qualitative difference usually leads to the payment under the financial instrument, which is regarded as the pre-tax deduction of interest in the country where the payer is located, and is regarded as dividend in the country where the payee is located.

Generally, the same expense is deducted several times (double deduction), or the same amount is deducted as expense in one country (region) and not included in income in another country (region) (one party deducts and the other party does not include income).

Foreign companies controlled by intransitive verbs

Establish controlled foreign enterprises in low-tax countries or tax havens, and keep profits in foreign companies through various commercial arrangements, without distribution or a small amount of distribution, so as to avoid paying taxes at home.

VII. Royalties

Refers to any money that people pay for the use of rights or intangible property (such as information and services). For example, income from individuals providing the right to use patents, trademarks, copyrights, non-patented technologies and other franchises. Due to the difficulty in pricing royalties, it provides space for enterprises to transfer profits.

Good tax planning, these elements are very important!

Now, more and more small and medium-sized enterprises tend to carry out tax planning, which can not only reduce the tax pressure for enterprises, but also enhance their economic activity ability to a certain extent. The tax point reminds us that some aspects need special attention when making a real tax planning plan.

The fundamental standpoint of tax planning: rationality, legality and compliance. Never underestimate these six words. If you don't follow this fundamental standpoint, it is tax evasion! This is illegal.

A stable, safe and trustworthy tax planning must comply with national laws and regulations, and it is also a legal act that allows taxpayers to strengthen their own economic activities within the scope of law.

Key points to keep in mind in tax planning: don't drill the blank point of tax law. Undeniably, some companies are good at drilling gaps or loopholes in China's tax laws.

For example, this year's hot event in the film and television entertainment circle, Fan Bingbing and its related companies ostensibly used Horgos, a tax haven allowed by the national tax policy, to register film and television companies or personal culture studios, but secretly engaged in illegal things. "Yin-Yang Contract" is a typical case of using the blank of tax law.

Therefore, real tax planning is a sensitive field that never touches the tax law.