The main methods of the hottest tax planning

The main methods of tax planning

first, the concept and characteristics of tax planning

tax planning refers to the economic behavior of taxpayers to maximize after tax financial interests through the prior arrangement and planning of investment, financial management, organization, operation and other matters within the scope of tax law, when there are a variety of tax payment schemes to choose from, guided by the information mechanics of tax policy

to correctly understand the concept of tax planning, we must firmly grasp the following three characteristics:

1 Legitimacy

tax planning is not only in line with the provisions of the tax law, but also in line with the legislative intent of the tax law, which is the fundamental point that tax planning is different from tax evasion. The result of tax planning and tax evasion is to pay less tax and reduce the tax burden. However, tax evasion is implemented in the form of fraud, which not only violates the provisions of the tax law, but also violates the legislative intent, and will be severely punished. Tax avoidance is carried out by seizing the omissions of the tax law. Although it does not violate the provisions of the tax law, it violates the legislative intent of the tax law, and will succeed at most for a while; Tax planning is guided by tax policy, which is not only in line with the provisions of the tax law, but also in line with the legislative intent of the tax law. When formulating the tax law and related systems, the state has long expected the tax planning behavior, and hopes to guide the effective allocation of resources and the rational distribution of taxes in the whole society through the tax planning behavior, so as to realize the national macro policy. Therefore, tax planning is not only not illegal, but also the rights of taxpayers are protected by the state

2. Advance

"planning" means planning, designing and arranging in advance. Tax planning is to take tax as an important factor that affects the final income of taxpayers, and make advance planning, design and arrangement for investment, financial management and business activities

taxpayers with independent economic interests pursue lower tax burden and maximum after tax financial interests, which is the internal driving force for tax planning. Different taxpayers and different behaviors are provided with different tax treatment, which is the external operation space that the state intends to provide for taxpayers in tax planning. These two points are the preconditions for tax planning

only when there is room for planning, taxpayers can choose a lower tax burden and obtain the maximum financial benefits; Only when taxpayers have the internal motivation to carry out tax planning, the state can use differential tax treatment to induce taxpayers to plan, design and arrange their investment, financial management and business activities in the direction encouraged by the state from the perspective of interests, so as to realize the national regulation and control policy. Therefore, the majority of users of tax financing can choose according to their own conditions in the process of choosing narrow channels that will lead to the increase of air flow velocity. It is the unity of maximizing after tax interests and implementing national regulatory policies. It must be the decision-making behavior of taxpayers on their investment, financial management and business activities, which is carried out before these activities, rather than after the established investment, financial management and business activities, Change its established results and tax obligations afterwards. The purpose of this change is only to pay less taxes and cannot achieve national macro-control. If we want to make this kind of change after the event, we can only adopt the method of fraud, which is bound to be alienated into tax evasion

3. Integrity

integrity refers to that for taxpayers, the most fundamental purpose of tax planning is to maximize after tax financial interests, even if personal after tax financial interests are maximized, so as to maximize enterprise value or shareholder wealth, rather than just pay less taxes, so as to reduce the tax burden of individual taxes or the overall tax burden of taxpayers. This is because the result of tax planning - taxpayers have contributed their own efforts to enhance the development of national scientific and technological innovation capacity. Tax planning is only a part of financial planning and enterprise planning. The goal of tax planning must be subject to the overall goals of the taxpayer's entire financial planning and enterprise planning. If one tax is paid less, the other tax may be paid more, and the overall tax burden does not have to be reduced; The scheme of minimizing the overall tax expenditure is not necessarily the scheme of maximizing the after tax financial interests of taxpayers

tax planning should consider not only the current financial interests of taxpayers, but also the future financial interests of taxpayers; We should not only consider the short-term interests of taxpayers, but also consider the long-term interests of taxpayers; We should not only consider the increase of taxpayers' income, but also consider the capital appreciation of taxpayers; We should not only consider the maximization of taxpayers' after tax financial interests, but also try to minimize the various risks that taxpayers bear, such as tax system change risk, market risk, interest rate risk, credit risk, exchange rate risk, inflation risk, etc. In short, only from the overall interests of taxpayers' financial plans and enterprise plans, can tax planning truly achieve its goal by pursuing advantages and avoiding disadvantages and making comprehensive decisions

a correct understanding of the concept of tax planning is the premise for the correct operation of tax planning

Second, the main methods of tax planning

(I) tax planning in the process of financing

different financing schemes have different tax burden, which provides an operating space for taxpayers to make tax planning in financing decisions

1. Determination of debt ratio

by using debt financing, taxpayers can not only obtain the amount of interest income, that is (interest and pre tax return on investment, debt cost ratio) × Total liabilities × (1) income tax rate; Moreover, the debt interest can be deducted before income tax. Compared with the dividend payment that cannot be used as expenses and can only be distributed from after tax profits, debt financing can pay less income tax and obtain tax saving income. Therefore, when the rate of return on investment before interest and tax is greater than the debt cost rate, increasing the debt ratio can obtain more of the above two kinds of income and improve the income level of equity capital. But it is not that the more liabilities, the better, because with the increase of the proportion of liabilities, the financial risk of enterprises will also increase, and even a debt crisis will occur. The tax planning of debt financing is to find out the most suitable debt ratio as far as possible

2. The use of financial leasing

through financial leasing, taxpayers can not only quickly obtain the required assets and preserve their borrowing capacity, but also the leased fixed assets can be depreciated. Depreciation is used as a cost, which reduces the tax base of income tax and pays less income tax. In addition, the rental interest paid can be deducted before income tax, further reducing the tax base. Therefore, the tax saving benefits of financial leasing are very obvious

3. Treatment of financing interest

according to the tax law, the interest expenditure of enterprise financing, which occurs during the preparation period, is included in the start-up cost and amortized by stages for a period of not less than five years since the enterprise is put into operation; In life