Keywords: enterprise tax income tax planning
I. Tax planning of taxpayers
When a parent company sets up a subsidiary company, whether to set up a subsidiary or a branch company will have an impact on the negative corporate income tax. As the subsidiary is an independent legal person, if it is profitable, its profits cannot be merged into the profits of the parent company, and it should pay enterprise income tax as an independent taxpayer. When the local tax rate of the subsidiary is low, the subsidiary can pay less enterprise income tax, which makes the overall tax burden of the company lower. However, a branch is not an independent legal person, so it can only merge its profits into the parent company to pay enterprise income tax. No matter how high or low the tax burden is, it cannot increase or decrease the overall tax burden of the company.
Second, the tax planning of tax basis
The tax basis of enterprise income tax is taxable income. Due to the inconsistency between accounting methods and tax accounting methods, accounting profits should be adjusted to determine taxable income. Tax planning should expand the amount of deductible items as much as possible without violating the law.
Influence of Different Capital Structures on Deduction Amount The capital of an enterprise is mainly composed of two parts, one is equity capital, and the other is creditor's rights capital. Because different tax policies are adopted for equity capital and creditor's rights capital, the enterprise income tax is affected. If you accept equity investment, according to the regulations, you can only distribute profits to investors after tax, and you can't deduct tax income; If you accept the debt investment, some of the interest expenses can be capitalized and some can be expensed. The interest expenses of the expensed part can be deducted before tax, which directly reduces the tax income. The interest expense of the capitalized part can be deducted before tax gradually by depreciation and amortization in installments. Examples are as follows: Company A needs to add1000000 yuan to meet the needs of production and operation. There are two options to choose from. One is to issue additional shares1000000 yuan; Option 2, issue bonds100000 yuan, with an annual interest rate of 5%. Assume that company A has an additional profit of 500,000 yuan at the end of the year, and distributes profits to investors according to 20% of after-tax profits, with an income tax rate of 33%. The calculation of enterprise income tax payable and profit distribution to investors is as follows:
Income tax payable in scheme 1 = 50× 33% =16.5 (ten thousand yuan)
Profit should be distributed to investors: (50- 16.5)×20%=6.7 (ten thousand yuan)
Option 2 should pay interest to creditors:100×10% =10 (ten thousand yuan).
Income tax payable: (50- 10)×33%= 13.2 (ten thousand yuan)
Through the analysis of this case, the tax burden of absorbing debt capital is lighter than that of absorbing equity capital.
According to the regulations, all kinds of expenses incurred by enterprises in researching and developing new products, new technologies and new processes can be fully deducted from the tax income. If the technology development expenses increase by more than 10% over the previous year, in addition to fully deducting the development expenses in the current year, the taxable income will be deducted by 50% of the actual amount. If this policy is well used in tax planning, it can not only speed up the upgrading of enterprises and enhance their competitiveness, but also make more pre-tax deductions and reduce the tax burden of enterprises.
The influence of different leasing methods on the deduction amount; Operating leasing and financing leasing are two leasing methods that should be considered in tax planning. As the operating lease method is adopted, the rental fee can be directly deducted before tax, while the financing lease method is adopted, and the rental fee is paid in installments and can only be deducted in installments. Therefore, enterprises can choose the operating lease mode with lower tax burden according to their needs.
Influence of Interest Repayment Method on Deducted Amount There are two ways to repay interest, one is to pay interest by installment, and the other is to repay it once due. Choosing the method of paying interest by installments can deduct interest expenses in advance, which is more beneficial to enterprises.
Influence of Long-term Equity Investment on Deduction Amount There are two accounting methods for long-term equity investment: cost method and equity method. The main difference between the two methods is that the confirmation time of investment income is different. The cost method is to confirm the investment income when the invested enterprise declares to pay dividends or actually receives dividends. Since the time for declaring or actually paying dividends is often after the balance sheet date, when using the cost method for accounting, the recognition time of its investment income is also after the balance sheet date, and the investment income is not included in the tax income of the current year, but incorporated into the tax income of the next year, thus delaying the payment time of income tax. However, at the end of the year, the equity method must confirm the investment income according to the investment proportion. As long as the invested enterprise is profitable, even if it has not distributed the realized income to the invested enterprise, the invested enterprise still has to confirm the investment income and pay the enterprise income tax in this year. Examples are as follows: Company A 1 month 1 day bought shares of Company B/kloc-0,000,000 shares at a price of 2 yuan per share, accounting for 20% of the total shares of Company B, and the applicable tax rate of Company A is 33%. Company B is located in the special economic zone, and its applicable tax rate is 15%. The accounting statements of Company B in 20001February 3 1 day show that the net profit is1000000 yuan. On February 200 1 year 10, Company B announced that it would distribute a profit of 700,000 yuan.
If Company A adopts the cost method for accounting, in 20001February 3 1 day, although Company A has realized the investment income, it does not need to do any accounting treatment or disclose it in the accounting statements, and the investment income in 2000 is zero. On February 200 1 year 10, Company A shall confirm the investment income of 70×20%= 14 (ten thousand yuan). This part of the investment income is at the end of 200 1, and the income tax should be paid14 ÷ (1-15%) × 33% = 5.435 (ten thousand yuan). The cost method is adopted to delay the payment of income tax payable on long-term investment income for one year.
If the equity method is used for accounting, on February 3, 20001KLOC-0/day, Company A must confirm the investment income of that year 100×20%=20 (ten thousand yuan) and disclose it in the accounting statements. At the same time, in 2000, the enterprise income tax due to the increase of investment income should be paid 20 ÷ (1-15%) × 33% = 7.765 (ten thousand yuan). On February, 200 1 year 10, when company b announced the dividend payment, company a could only adjust the long-term equity investment account and no longer confirm the investment income.
After the above analysis, it can be seen that the cost method is more beneficial to investment enterprises. When making a long-term equity investment decision, an enterprise should carefully make tax planning, determine the investment ratio and choose the accounting method of equity investment according to the needs of its business strategy.
The influence of asset valuation method on deduction amount; The enterprise accounting system allows different valuation methods for enterprise assets. For example, inventory valuation can adopt FIFO method, LIFO method, weighted average method and so on. When prices rise, the LIFO method can increase the amount of deduction. For another example, the depreciation of fixed assets can be used
Straight line method, accelerated depreciation method. The accelerated depreciation method can increase the amount of deduction in the early stage and delay the payment of enterprise income tax.
Third, tax planning to make up for losses
According to the tax law, the losses incurred by an enterprise can be made up by the tax income in the next year. If the income tax in the next tax year is insufficient, it can be made up year by year, but the maximum period of making up for it shall not exceed five years. In tax planning, we can make use of this policy to make up for losses. Before the five-year period of making up for losses with pre-tax profits expires, we can make use of the option of asset pricing and amortization allowed by the tax law to make more pre-tax deductions, thus continuing to form losses for enterprises, thus extending the period of this preferential policy. For production-oriented foreign-invested enterprises, losses can be formed at the initial stage of operation, and the profit-making year can be postponed, so that the calculation time of two exemptions and three reductions can be delayed as much as possible, thus reducing the tax burden. For example, the profit and loss of a company 199 1-2000 is shown in the following table, and the income tax rate is 33%.
Table 1 Unit: 10,000 yuan
Year 9 1 92 93 94 95 96 97 98 99 2000 total
Profit and loss-100-80-60 20 30 30 40 70 80 90120
Income tax 0000003.3 26.4 29.7 59.4
According to the regulations, the company's losses in 9 1, 92 and 93 can be made up before tax, but only in 1998, and the profits in 1998 can only make up for the losses in 1993 (600,000), and the balance after making up the losses should be taxed at 33,000 yuan (70-60)×33%. Although there is still an uncompensated loss of 533,000 yuan in 1999. During the period of 10, the total enterprise income tax was 594,000 yuan (3.3+80×33%+90×33%). If the company adopts legal measures to extend the loss period, see the table below.
Table 2 Unit: 10,000 yuan
Year 9 1 92 93 94 95 96 97 98 99 2000 total
Profit and loss-100-80-40-20 30 30 40 70 80 90120
Income tax 000000019.8 29.7 49.5
Comparing the two tables, we can see that the total profit and loss of 10 remains unchanged at1200,000 yuan, but the loss period is extended to 94 years, and the period of making up the loss is extended to 99 years. The income tax payable by enterprises in 99 years is (80-20) × 33% =198,000 yuan, and the income tax payable in 2000 years.
In the above example, if the company belongs to a production-oriented foreign-invested enterprise and enjoys the treatment of two exemptions and three reductions, the first scheme is to calculate the profit-making year from 1994, exempt from corporate income tax in 1994 and 1995, and pay the income tax at half in 1996, 1997 and 1998. The total corporate income tax is (70-60) ×16.5%+(80+90). In the second scheme, the profit-making year is calculated from 1995, the enterprise income tax is exempted in 1995 and 1996, and the income tax is halved in 1997, 1998 and 1999. The total enterprise income tax is (80-20) ×16.5+90× 33% = 330,000 yuan, and the tax burden is reduced by 247,500 yuan compared with the two schemes.
Four, the use of preferential tax policies for tax planning
Choose favorable industries to enjoy tax relief. Because tax policies have different tax preferences for different regions, enterprises can choose low-tax areas to invest accordingly when investing. For example, foreign investors who invest in production-oriented enterprises enjoy tax concessions of two exemptions and three reductions; Investment in energy, transportation and other important projects can enjoy tax concessions of five exemptions and five reductions; Enterprises that invest in advanced technology can also enjoy preferential tax reduction and exemption.
Choose a favorable place of registration to enjoy tax relief. Different places of registration of enterprises have different tax policies. Investment in special economic zones, economic and technological development zones in coastal port cities and the establishment of production-oriented foreign-funded enterprises in Pudong New Area of Shanghai can enjoy the income tax rate of 15%; Investment in national high-tech development zones can be exempted from income tax for two years; The establishment of foreign-funded enterprises engaged in service industry in special economic zones enjoys preferential tax treatment of one exemption and two halves; Investment in old, young, border and poor areas and western development zones can also enjoy preferential treatment of income tax reduction or exemption, and so on.
According to the regulations, foreign investors of foreign-invested enterprises will directly reinvest their profits, and if the operating period is not less than five years, they will be refunded 40% of the income tax paid on the investment with the approval of the tax authorities. Re-investment in the establishment of advanced technology enterprises or product export enterprises can fully refund the reinvested tax.
Tax planning is a new undertaking in our country. The author has discussed the tax planning in the establishment of enterprises and the tax planning in the production and operation activities of enterprises in relevant articles. This paper further discusses the tax planning of enterprise income tax. As an important field of enterprise financial management, tax planning still has a lot of room for planning, which needs further theoretical and practical exploration.
Tax planning of enterprise income tax
Enterprise income tax is a kind of tax that is levied on the production and operation income and other income after deducting the project amount from the operating income of the enterprise, which is closely related to the economic interests of the enterprise. Therefore, tax planning must be done well in advance.
The key to tax planning of enterprise income tax is to reduce taxable income, expand the amount of deductible items as much as possible, thus reducing taxable income and ultimately achieving the purpose of reducing enterprise income tax.
I. Tax planning of taxpayers
When a parent company sets up a subsidiary company, whether to set up a subsidiary or a branch company will have an impact on the negative corporate income tax. Since the subsidiary is an independent legal person, if it makes a profit, its profits cannot be merged into the profits of the parent company, and it should pay enterprise income tax separately as an independent taxpayer. When the local tax rate of the subsidiary is low, the subsidiary can pay less enterprise income tax, which makes the overall tax burden of the company lower. However, a branch is not an independent legal person, so it can only merge its profits into the parent company to pay enterprise income tax. No matter how high or low the tax burden is, it cannot increase or decrease the overall tax burden of the company.
Second, the tax planning of tax basis
The tax basis of enterprise income tax is taxable income. Due to the inconsistency between accounting methods and tax accounting methods, accounting profits should be adjusted to determine taxable income. Tax planning should expand the amount of deductible items as much as possible without violating the law.
Influence of Different Capital Structures on Deduction Amount The capital of an enterprise is mainly composed of two parts, one is equity capital, and the other is creditor's rights capital. Because different tax policies are adopted for equity capital and creditor's rights capital, the enterprise income tax is affected. If you accept equity investment, according to the regulations, you can only distribute profits to investors after tax, and you can't deduct tax income; If you accept the debt investment, some of the interest expenses can be capitalized and some can be expensed. The interest expenses of the expensed part can be deducted before tax, which directly reduces the tax income. The interest expense of the capitalized part can be deducted before tax gradually by depreciation and amortization in installments. Examples are as follows: Company A needs to add1000000 yuan to meet the needs of production and operation. There are two options to choose from. One is to issue additional shares1000000 yuan; Option 2, issue bonds1000,000 yuan, with an annual interest rate of 5%. Assuming that Company A has an additional profit of 500,000 yuan at the end of the year, it will distribute the profits to investors according to 20% of the after-tax profits, and the income tax rate will be 33%. The calculation of the enterprise's income tax payable and the distribution of profits to investors is as follows:
Income tax payable in scheme 1 = 50× 33% =16.5 (ten thousand yuan)
Profit should be distributed to investors: (50- 16.5)×20%=6.7 (ten thousand yuan)
Option 2 should pay interest to creditors:100×10% =10 (ten thousand yuan).
Income tax payable: (50- 10)×33%= 13.2 (ten thousand yuan)
Through the analysis of this case, the tax burden of absorbing debt capital is lighter than that of absorbing equity capital.
According to the regulations, all kinds of expenses incurred by enterprises in researching and developing new products, new technologies and new processes can be fully deducted from the tax income. If the technology development expenses increase by more than 10% over the previous year, in addition to fully deducting the development expenses in the current year, the taxable income will be deducted by 50% of the actual amount. If this policy is well used in tax planning, it can not only speed up the upgrading of enterprises and enhance their competitiveness, but also make more pre-tax deductions and reduce the tax burden of enterprises.
The influence of different leasing methods on the deduction amount; Operating leasing and financing leasing are two leasing methods that should be considered in tax planning. As the operating lease method is adopted, the rental fee can be directly deducted before tax, while the financing lease method is adopted, and the rental fee is paid in installments and can only be deducted in installments. Therefore, enterprises can choose the operating lease mode with lower tax burden according to their needs.
Influence of Interest Repayment Method on Deducted Amount There are two ways to repay interest, one is to pay interest by installment, and the other is to repay it once due. Choosing the method of paying interest by installments can deduct interest expenses in advance, which is more beneficial to enterprises.
Influence of Long-term Equity Investment on Deduction Amount There are two accounting methods for long-term equity investment: cost method and equity method. The main difference between the two methods is that the confirmation time of investment income is different. The cost method is to confirm the investment income when the invested enterprise declares to pay dividends or actually receives dividends. Since the time for declaring or actually paying dividends is often after the balance sheet date, when using the cost method for accounting, the recognition time of its investment income is also after the balance sheet date, and the investment income is not included in the tax income of the current year, but incorporated into the tax income of the next year, thus delaying the payment time of income tax. However, at the end of the year, the equity method must confirm the investment income according to the investment proportion. As long as the invested enterprise is profitable, even if it has not distributed the realized income to the invested enterprise, the invested enterprise still has to confirm the investment income and pay the enterprise income tax in this year. Examples are as follows: A company 1 month 1 day bought/kloc-0,000,000 shares of B company, and the price of each share was 2 yuan, accounting for 20% of the total shares of B company, and the applicable tax rate of A company was 33%. B company was located in the special economic zone, and its applicable tax rate was/kloc-0,5%. B company in 2000. On February 200 1 year 10, Company B announced that it would distribute a profit of 700,000 yuan.
If Company A adopts the cost method for accounting, in 20001February 3 1 day, although Company A has realized the investment income, it does not need to do any accounting treatment or disclose it in the accounting statements, and the investment income in 2000 is zero. On February 200 1 year 10, Company A shall confirm the investment income of 70×20%= 14 (ten thousand yuan). This part of the investment income is at the end of 200 1, and the income tax should be paid14 ÷ (1-15%) × 33% = 5.435 (ten thousand yuan). The cost method is adopted to delay the payment of income tax payable on long-term investment income for one year.
If the equity method is used for accounting, on February 3, 20001KLOC-0/day, Company A must confirm the investment income of that year 100×20%=20 (ten thousand yuan) and disclose it in the accounting statements. At the same time, in 2000, the enterprise income tax due to the increase of investment income should be paid 20 ÷ (1-15%) × 33% = 7.765 (ten thousand yuan). On February, 200 1 year 10, when company b announced the dividend payment, company a could only adjust the long-term equity investment account and no longer confirm the investment income.
After the above analysis, it can be seen that the cost method is more beneficial to investment enterprises. When making a long-term equity investment decision, an enterprise should carefully make tax planning, determine the investment ratio and choose the accounting method of equity investment according to the needs of its business strategy.
The influence of asset valuation method on deduction amount; The enterprise accounting system allows different valuation methods for enterprise assets. For example, inventory valuation can adopt FIFO method, LIFO method, weighted average method and so on. When prices rise, the LIFO method can increase the amount of deduction. For another example, the depreciation of fixed assets can adopt the straight-line method and accelerated depreciation method. The accelerated depreciation method can increase the amount of deduction in the early stage and delay the payment of enterprise income tax.
Third, tax planning to make up for losses
According to the tax law, the losses incurred by an enterprise can be made up by the tax income in the next year. If the income tax in the next tax year is insufficient, it can be made up year by year, but the maximum period of making up for it shall not exceed five years. In tax planning, we can make use of this policy to make up for losses. Before the five-year period of making up for losses with pre-tax profits expires, we can make use of the option of asset pricing and amortization allowed by the tax law to make more pre-tax deductions, thus continuing to form losses for enterprises, thus extending the period of this preferential policy. For production-oriented foreign-invested enterprises, losses can be formed at the initial stage of operation, and the profit-making year can be postponed, so that the calculation time of two exemptions and three reductions can be delayed as much as possible, thus reducing the tax burden by 59.4.
Four, the use of preferential tax policies for tax planning
Choose favorable industries to enjoy tax relief. Because tax policies have different tax preferences for different regions, enterprises can choose low-tax areas to invest accordingly when investing. For example, foreign investors who invest in production-oriented enterprises enjoy tax concessions of two exemptions and three reductions; Investment in energy, transportation and other important projects can enjoy tax concessions of five exemptions and five reductions; Enterprises that invest in advanced technology can also enjoy preferential tax reduction and exemption.
Choose a favorable place of registration to enjoy tax relief. Different places of registration of enterprises have different tax policies. Investment in special economic zones, economic and technological development zones in coastal port cities and the establishment of production-oriented foreign-funded enterprises in Pudong New Area of Shanghai can enjoy the income tax rate of 15%; Investment in national high-tech development zones can be exempted from income tax for two years; The establishment of foreign-funded enterprises engaged in service industry in special economic zones enjoys preferential tax treatment of one exemption and two halves; Investment in old, young, border and poor areas and western development zones can also enjoy preferential treatment of income tax reduction or exemption, and so on.
According to the regulations, foreign investors of foreign-invested enterprises will directly reinvest their profits, and if the operating period is not less than five years, they will be refunded 40% of the income tax paid on the investment with the approval of the tax authorities. Re-investment in the establishment of advanced technology enterprises or product export enterprises can fully refund the reinvested tax.
Tax planning is a new undertaking in our country. The author has discussed the tax planning in the establishment of enterprises and the tax planning in the production and operation activities of enterprises in relevant articles. This paper further discusses the tax planning of enterprise income tax. As an important field of enterprise financial management, tax planning still has a lot of room for planning, which needs further theoretical and practical exploration.