Tax depression refers to the enterprises registered in the tax management area of a specific administrative region, which achieve the purpose of reducing the tax burden of enterprises through regional tax incentives, simplified tax collection and management methods and local tax retention and return.

Many parts of this country have tax depression and island policy. There are tax depressions in many places in China, such as online celebrities Horgos, Shanghai, Jiangxi, Hubei, Jiangsu and so on. At present, the most tight tax depression is the "park tax depression", which is located in the new city. A single park is smaller, more convenient and safer.

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Advantages of tax depression

1, you can enjoy preferential regional tax policies.

The most direct purpose of choosing tax depression is to enjoy local preferential tax policies through backward depression. For example, in the past, most film and television companies chose to settle in Khorgos, Xinjiang, where the network celebrities lived, because there was a policy of 5 exemptions and 5 reductions in corporate income tax.

Of course, different depressions and different tax incentives are different. The best way to know the specific tax benefits is to consult a professional and reliable investment service consulting company.

2, you can use simplified tax collection and management methods to achieve tax savings.

The second advantage of tax depression is that the method of "approved collection" is adopted in tax management, that is, the enterprise income tax of company system or the individual income tax of partnership system and sole proprietorship system is calculated by the method of approved profit rate.

3, the use of local retained tax return to achieve tax savings.

In order to attract enterprises to settle in, the "lowland" local finance will take out the local retained tax funds to refund taxes to enterprises. Tax depression can give enterprises a high tax refund reward, and when it is more, it can save taxes by more than 35%.

4. There are various ways to enjoy tax incentives in lowlands.

After enterprises settle in the depression, there are many preferential ways to enjoy the after-tax depression, such as handling branches to pay taxes on the depression and enjoying policies in the form of business diversion; You can also set up a new company, and after the original company receives the business, it will subcontract it to a company with low tax revenue to realize tax saving; There are also forms such as registered address transfer, which are all feasible; In addition, it is also a good form for sole proprietorship enterprises, individual industrial and commercial households and partnership enterprises to enjoy the approved levy.

Sohu. What is tax depression and its advantages?