How can companies prepare for tax planning?

1. Choose taxes with large tax planning space

Select taxes that have a significant impact on decision-making as the focus of tax planning; choose taxes with large tax flexibility as the focus of tax planning , the greater the tax flexibility, the greater the potential for tax planning.

2. Comply with tax preferential policies

Generally, when designing tax categories, there are tax preferential provisions. If enterprises make full use of tax preferential provisions, they can enjoy tax savings.

3. Change the composition of taxpayers

Before conducting tax planning, an enterprise must first consider whether it can avoid becoming a certain taxpayer. For example, under the provisional regulations on value-added tax and business tax that came into effect in 2016, enterprises would rather choose to be business tax taxpayers than value-added tax taxpayers, and would rather choose to be general VAT taxpayers than small-scale VAT taxpayers. Because the overall tax burden of business tax is lighter than the overall tax burden of VAT, the overall tax burden of general VAT taxpayers is lighter than the overall tax burden of small-scale VAT taxpayers.

4. Basic factors affecting the amount of tax payable

There are two factors that affect the amount of tax payable: tax basis and tax rate. Tax planning is nothing more than starting from these two factors. For example, the basis for calculating corporate income tax is taxable income. The tax law stipulates that the taxable income of an enterprise = total income - the amount of allowable deduction items. The specific calculation process also stipulates complex tax increase and decrease items. Therefore, the enterprise must There is a certain space for tax planning.

5. Pay attention to the financial management link

Tax planning work can be done in the process of corporate financial management. For example, according to tax laws, interest on debt is a deduction for income tax and enjoys income tax benefits, while dividend payments can only be distributed among corporate after-tax profits, so debt capital planning has tax-saving advantages.