18 Methods of Tax Planning, Tax Planning Methods

Legal Analysis] The main methods of tax planning are as follows: 1. Use preferential tax policies for tax planning; 2. Tax planning by diversifying the tax base; 3. Use the flexibility of the tax law for tax planning; 4. Take advantage of the gaps in the tax law for tax planning; 5. Tax planning through transfer pricing; 6. Tax planning through tax deferral.

Tax planning is also known as reasonable tax avoidance, that is, within the scope of the law, you can reduce taxes, as far as possible to obtain tax-saving economic benefits, the policy is issued in combination with the situation of China's market economy, I hope that the Chinese market can be promoted by this development, in fact, to a certain extent, it is to learn from the management methods of Western countries, the implementation of this preferential policy of tax planning, effectively avoid the phenomenon of excessive tax reduction and exemption, which can balance the economic benefits between enterprises and individuals.

Legal basis] Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Business Tax Article 3 clearly stipulates the circumstances under which business tax can be deducted as follows:

1) Units and individuals provide business tax taxable services, transfer of intangible assets and sale of immovable property refund.

If the refund has been subject to business tax, the refund of the tax collected is allowed and can also be deducted from the taxpayer's subsequent turnover.

2) If an entity or individual provides business tax taxable services, transfers intangible assets, or sells immovable property, if the price and the discount amount are indicated on the same invoice, the discounted price shall be used as the turnover and the discount amount shall be invoiced separately, regardless of how it is financially handled, shall not be deducted from the turnover.

Because the billing system of the various valuable cards sold by telecommunications units can only issue accounts according to the face value of the valuable cards and recognize the revenue according to the face value of the valuable cards, the discount amount cannot be directly indicated on the sales invoice, and the balance after the sales discount reflected in the current financial accounting is the turnover of the revenue recognized by the face value minus the sales discount reflected in the current financial accounting.

Legal Analysis] The main methods of tax planning are as follows: 1. Use preferential tax policies for tax planning; 2. Determine the tax planning by diversifying the tax base; 3. Use the flexibility of the tax law for tax planning; 4. Take advantage of the gaps in the tax law for tax planning; 5. Tax planning through transfer pricing; 6. Tax planning through tax deferral. Tax planning is also known as reasonable tax avoidance, that is, within the scope of the law, you can reduce taxes, as far as possible to obtain tax-saving economic benefits, the policy is issued in combination with the Chinese market economy conditions to issue, hope that the Chinese market can be developed under this promotion, in fact, to a certain extent, it is like drawing on the management methods of Western countries, the implementation of this preferential policy of tax planning, effectively avoid the phenomenon of excessive tax reduction and exemption, which can balance the economic benefits between enterprises and individuals.

Legal basis] Notice of the Ministry of Finance and the State Administration of Taxation on Several Policy Issues Concerning Business Tax Article 3 clearly stipulates the circumstances under which business tax can be deducted as follows: (1) If a unit or individual provides business tax taxable services, transfers intangible assets and sells immovable property, if the refund has been levied business tax, the refund of the tax collected is allowed and can also be deducted from the taxpayer's subsequent turnover. 2) If an entity or individual provides business tax taxable services, transfers intangible assets, or sells immovable property, if the price and the discount amount are indicated on the same invoice, the discounted price shall be used as the turnover and the discount amount shall be invoiced separately, regardless of how it is financially handled, shall not be deducted from the turnover.

Telecom units sell a variety of valuable ** cards, due to their billing system only.

The 18 ways to plan for tax planning are as follows:

One. 1.Method of the guide line:

The purpose is mainly to reasonably control the proportion of costs according to the special provisions of some industries in the national tax law, and choose the tax policy and tax rate that is suitable for their satisfaction; 2.Classification method: Its purpose is to reduce the tax risk of each enterprise by means of legal means

Product spin-off method: The aim is to legally reduce taxes by studying the components of the product, or business.

Two. 1.Planning Methods for the Division of Labor:

The aim is to establish two companies in accordance with the special provisions of the tax law, reducing the tax burden and, at the same time, tax incentives; 2.Preferential technical methods: the purpose is to make full use of preferential tax policies and create tax incentives and procedural requirements under the premise of meeting the conditions; 3.

The form of the reform process: the purpose is to convert the form by reducing tax revenues, or to reduce the tax rate.

Three. Legitimacy:1.

The tax laws and regulations formulated by the state, the expectation of tax planning behavior, and the hope that through tax planning behavior, the effective allocation of resources and the rational distribution of taxes of the whole society will be guided, in order to achieve the national macro policy. Therefore, tax planning is not only and which is legal, but along with the rights of taxpayers are protected by the state. 2.

Integrity: Integrity refers to the most basic purpose of taxpayers' tax planning is to maximize the financial benefits after tax, even if the personal tax economic benefits are maximized, the enterprise value is maximized and the shareholder wealth is maximized, not only to reduce taxes, but also to reduce the overall tax burden of individual tax or to reduce the overall tax burden of taxpayers. 3.

Advanced: "Planning" is planning, designing, and arranging in advance. Tax planning is taxation, as an important factor affecting the income of taxpayers, in the planning, design, and arrangement of investment, finance, and business activities in advance.

1.Investment tax incentive programs: For example, programs such as IRAs, 401(k), etc., can reduce income taxes.

2.Donate to charity.

3.Buying a property.

4.Take advantage of tax credits.

5.Take advantage of tax exemptions.

6.Take advantage of tax deductions.

7.Take advantage of tax credit.

8.Take advantage of tax depreciation.

9.Use tax revenues to celebrate your tiredness.

10.Take advantage of tax estate planning.

11.Take advantage of tax trusts.

12.Take advantage of a tax retirement plan.

13.Lee Sakura does tax insurance.

14.Take advantage of tax collection.

15.Take advantage of tax subsidies.

16.Take advantage of tax compensation.

17.Take advantage of tax support.

18.Take advantage of the preferential policies of the tax office.

Tax planningAlso known as reasonable tax avoidance, it is an important part of the overall business plan of the enterprise to reduce the payment of taxes as much as possible within the scope of the law.

Even if it adapts to the needs of taxpayers, it is also the inevitable result of the pursuit of interests by enterprises in a market economy.

Common tax planning methodsThere are twelve main types

1. Tax planning by using the different identities of individual industrial and commercial households, sole proprietorships, partnerships, small and micro enterprises, etc.;

2. Use the choice of VAT taxpayer status, according to the business situation, the tax rate is high, choose the general taxpayer or small-scale taxpayer;

3. Use the proportional tax rate planning method to make taxpayers suitable for lower tax rates;

Fourth: take advantage of the tax incentives for specific industries, specific regions, specific behaviors, and special periods to register the company in the investment park with preferential tax policies;

Fifth, the use of intangible assets amortization method, fixed assets depreciation method, inventory valuation method of indirect cost allocation method for planning;

Six: Use the tax selection of mixed sales for planning.

Seventh, the use of the standard of pre-tax deduction of expenses for tax planning, such as public welfare donation expenses such as entertainment expenses, advertising business expenses, trade union funds, etc., to control the scale and proportion of expenditures, has achieved the purpose of tax saving;

8. Use the organizational form of the enterprise to carry out tax planning, such as the choice of income tax payment of the subsidiary company, and the choice of whether to establish a branch or a subsidiary according to the company's operation;

9. Use additional deductions for tax planning, such as 75% deduction for R&D expenses and 100% deduction for wages paid for the placement of disabled persons;

10. Use the tax base threshold for tax planning, such as the deduction limit at the tax threshold, the tax rate threshold, etc.;

11. Tax planning through tax deferral, such as the timing of income recognition;

Twelve: the use of tax incentives for planning, such as the 15% tax rate for high-tech enterprises, tax exemption for agriculture, forestry, wood and fish industry, two exemptions and three halves of infrastructure investment supported by the state, 10% of the investment in special equipment such as environmental protection, energy conservation and water saving, safety production, etc., from the tax payable of the enterprise in the current year, ** rewards, etc.;

The basic methods of tax planning: preferential policy planning method, direct utilization planning method, location flow planning method, and creation of conditions planning method.

Expansion:

1. The method of non-taxation to leniency: refers to the method of selecting the business, investment, financial management and other activities that are not taxable according to tax laws, regulations or policies to reduce the tax burden.

2. Tax reduction and exemption method: refers to the method of selecting the business, investment, financial management and other activities that can enjoy tax reduction or tax exemption as stipulated by tax laws, regulations or policies to reduce the tax burden.

3. Tax rate difference method: refers to the method of choosing a plan for operation, investment, financial management and other activities with a lower tax rate according to the tax rate difference stipulated by tax laws, regulations or policies, so as to reduce the tax burden.

4. Segmentation method: refers to the selection of plans for operation, investment, financial management and other activities that can be divided according to tax laws, regulations or policies, so as to achieve or separate the tax basis of different tax burdens and types of taxes; or decompose into different taxpayers or tax objects, and increase the amount or frequency of deductions based on different tax calculation bases; It may also be a way to reduce the tax burden by preventing the tax rate from rising.

5. Deduction method: refers to the method of increasing the number of items or amounts that can be deducted as much as possible in the tax basis of business, investment, wealth management and other activities in accordance with the tax laws, regulations or policies of [ju], so as to reduce the burden of tax policies.

6. Credit method: refers to the method of deducting the taxable amount or corresponding expenditure of business, investment, wealth management and other activities in accordance with tax laws, regulations or policies to reduce the tax burden.

7. Deferred tax payment method: refers to the method of deferring the payment of the current tax payable for business, investment, financial management and other activities in accordance with tax laws, regulations or policies, so as to achieve a relative reduction of tax burden. Although the deferred tax payment cannot reduce the taxpayer's payable, for the taxpayer, the postponement of the tax period is equivalent to obtaining an interest-free loan and obtaining the time value of money, which is conducive to its capital turnover.

Specifically, the following common methods can be used when formulating tax planning:

Taxpayer Planning Law: Reasonably define and transform the identity of taxpayers, so that the tax burden borne by taxpayers can be minimized as much as possible, or directly avoid becoming a certain type of taxpayer.

Tax base planning method: By controlling the tax base to achieve time saving, or by decomposing the tax base, the tax base can be transformed from a form of heavier tax burden to a form of lighter tax burden, and the total tax base can be minimized and the total tax base can be legally reduced.

Tax rate planning method: the proportional tax rate planning method enables taxpayers to apply a lower tax rate; Prevent the tax rate from rising through progressive tax rate planning, and pay attention to the impact of the progressive tax system on the tax burden from the aspects of individual income tax and land value-added tax.

Tax Incentive Planning Law: Tax incentives for special industries, specific regions, specific behaviors, and special periods. For example, the approved levy rate of entrepreneurial parks is very low, such as a series of preferential tax policies promulgated by the state after the epidemic.

Accounting Policy Planning: Reduce the tax burden of enterprises through apportionment planning and estimation planning.

Tax burden transfer planning method: the use of **floating, **decomposition, to transfer or avoid the tax burden.

Deferred Tax Planning Method: Deferred recognition of revenue or early payment of expenses.

Circumvention of the platform planning method: such as using the tax threshold, deduction limit, tax rate jump threshold, etc.