Tax planning for small-scale taxpayers

1. Take advantage of preferential income tax policies.

According to relevant policies and regulations, the corporate income tax rate is normally 25%, which is simply understood as an income tax of 25% of the profit. For high-tech enterprises, the corporate income tax rate is generally 15. In addition, for some special industries or regions (such as Kashgar and Horgos), the state will also implement preferential tax policies of tax reduction or exemption. Therefore, if enterprises want to carry out tax planning through this method, they must make their own conditions meet the requirements. Policy requirements, so as to achieve tax savings by taking advantage of tax preferential policies.

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2. Choose the corporate organizational form appropriately.

There are two types of corporate organizations: subsidiaries and branches. Among them, subsidiaries have independent legal personality and can independently bear civil legal responsibilities and obligations, while branches do not have independent legal personality and need to bear legal responsibilities and obligations by the head office. Moreover, subsidiaries usually need to pay tax separately, while branches need to be consolidated to the head office for taxation. Therefore, from the perspective of branch profits and losses and whether branches enjoy preferential tax rates, enterprises need to consider which organizational form is more conducive to reducing tax burdens, so as to use the corporate organizational form to adopt the correct tax planning method.

3. Maximize pre-tax expenses.

Expenses are a decreasing factor in a company's taxable income. Therefore, within the scope allowed by the tax law, the current expenses of the enterprise should be set out as much as possible to reduce the income tax payable, or obtain tax benefits through legally deferring tax time. However, when using this method, enterprises need to pay attention to the fact that expenses with proportional limits under the tax law should try not to exceed the limit, and the portion within the limit should be fully expensed; the excess portion is not allowed to be deducted before tax by the tax law and must be incorporated into profits for taxation. Therefore, we should pay attention to the control of tax saving points of various expenses.