Tax rate analysis method

Recently, the latest tax rate of version 202 1 began to be refreshed. I also found this information from the internet, and I will share it with you later in this article. However, I want to say that the latest tax rate in the 202 1 version has no authoritative source, and it should be a summary of the experience of relevant personnel. The specific source can no longer be traced back. Interestingly, I compared the previous 2020 edition.

Therefore, this tax rate indicator can only be a reference, not absolute. If your corporate tax rate is lower than the data in the table, it doesn't mean there is a problem.

However, the tax rate is indeed an indicator that we can't ignore in tax management.

When we do the financial analysis of the company, we all know that it is very reasonable for the tax bureau to set some indicators for analysis, monitoring and early warning in the face of thousands of enterprises across the country. In addition to the tax rate indicators, I also have six tax early warning indicators, which are also worthy of our attention.

Since the tax rate is so important, do you know what it is? How to calculate the tax rate?

Tax rate generally refers to the tax burden of enterprises in a certain period of time, and the calculation method is generally measured by the value calculated by dividing tax by income.

The tax rate we often say mainly refers to the value-added tax rate and income tax rate.

1- VAT rate

The calculation formula of VAT rate is:

VAT rate = VAT payable in the current period ÷ taxable sales revenue in the current period.

VAT payable in current period = VAT output tax in current period-actual input tax deduction

Actual input tax deduction = input tax retained at the beginning+input tax in the current period-input transfer-export tax rebate-input tax retained at the end.

For the analysis of tax rate, from the aspect of output, the main considerations are sales volume, tax rate and sales structure corresponding to each product sold, and input tax. As can be seen from the above formula, the situation will be a little more complicated and many factors will be considered.

2- Income tax rate

The formula of income tax rate is:

Income tax rate = current income tax payable ÷ current sales revenue.

Income tax payable in this period = income tax payable × income tax rate-tax relief-tax credit

3- tax rate analysis method

In fact, there are two methods to analyze tax rate, namely, horizontal comparison method and vertical comparison method.

The horizontal comparison method is to compare with the tax rate of the same industry in this area. Under normal circumstances, you can inquire about the tax rate of the same industry by private letter. But many times people won't tell you, or what they tell you may not be true, so this method is not used much. It would be better if we could find out.

Because the data of horizontal comparison method is difficult to obtain, many enterprises adopt vertical comparison method, that is, compare with the historical tax rate of the enterprise itself, analyze the differences and see if the reasons for the differences are normal.

4- How to control the corporate tax rate

If we do a tax rate analysis, we will find that both the tax rate of value-added tax and the tax rate of income tax will be affected by some key factors, and the situation of each enterprise is different and needs specific analysis.

There are three ways to control the tax rate. You can think from these directions according to the actual situation of your own enterprise.

The first is the country's preferential tax policies. Because the country will introduce different preferential tax policies according to the economic development, for example, during the epidemic period, many preferential tax policies were introduced for different taxpayers to reduce the burden on taxpayers and boost the economy. Enterprises should pay attention to these policies and find ways to enjoy the tax benefits they can enjoy.

The second is how the enterprise does its own tax planning. We can think about whether the enterprise itself has made targeted tax planning, such as stipulating that invoices obtained from operations must be specially issued, which can reduce the VAT rate.

The third is whether the company has analyzed the tax burden changes brought to the enterprise after the business and process changes, designed a more reasonable plan to reduce the tax burden for the new business, or still operated according to the previous practice.

5- Pay attention to the tax rate, but don't blindly believe it.

Enterprises should pay attention to tax rate management, not only to deal with tax inspection, but also for enterprises themselves. The latest tax rate indicators in 202 1 and the following six tax early warning indicators are for reference only. Don't trust them blindly. The following is a screenshot. For excel version, please pay attention to and reply to "202 1 tax rate" to obtain the document.