China's foreign-invested enterprises to implement tax tilt policy, so the transition from domestic-funded enterprises to Sino-foreign joint ventures, cooperative enterprises and other business models, is not a good way to get to enjoy more tax reductions, tax exemptions, or tax reprieve.
2. Register to the "tax oasis"
Where in the special economic zones, coastal economic development zones, special economic zones and economic and technological development zones in the city's old urban areas, as well as state-recognized high-tech industrial zones, bonded zones, the establishment of the production, operation, service-oriented enterprises and engaged in the development of new and high technology enterprises, can enjoy a greater degree of tax incentives. are all entitled to a greater degree of tax incentives.
3. Entering "special industries"
For example, the tax exemption for the service industry provides that: child care centers, kindergartens, nursing homes, and welfare institutions for the disabled are exempted from business tax for the provision of child rearing services. Marriage introduction and funeral services are exempt from business tax. Medical services provided by hospitals, clinics and other medical institutions are exempt from business tax. Civil welfare enterprises that place "persons with four disabilities" at least 35% of their production staff are exempted from business tax on business operations that fall within the scope of the business tax item "service industry" (except for advertising). Individuals with disabilities are exempted from paying business tax on the services they provide. Interest income from small loans to farmers by financial institutions is 90% of the total income when calculating taxable income.
4. Doing the "administrative expenses" article
Enterprises can increase the bad debt reserve withdrawal rate, bad debt reserve is to enter the administrative expenses, which reduces the year's profit, you can pay less income tax.
Enterprises can try to shorten the depreciation life, so that the amount of depreciation increases, the profit decreases, the income tax paid less. In addition, different depreciation methods are used and the depreciation amount charged varies greatly, which ultimately affects the amount of income tax.
5. Use but not "cost"
Private owners of small and medium-sized enterprises should take into account how the operation of the water, electricity, fuel costs, etc. to share the cost of living expenses of family members, transportation costs and all kinds of miscellaneous expenses are included in the cost of the product.
Today's business community, this item is frequently used. They will buy their own house, car expenses, and even the cost of children's daycare and school expenses are included in the company's business projects. This treatment is not permitted by the national policy, although this method is not uncommon in today's business community, but the integrity of the interoperability is not advocated here.
6. Reasonable increase in employee benefits
Private owners of small and medium-sized enterprises in the process of production and business operations, can be considered within the scope of not exceeding the taxable salary of the appropriate increase in wages for employees, for employees for medical insurance, the establishment of workers' pension funds, unemployment insurance funds and workers' education funds such as the integrated fund, corporate property insurance and transportation insurance and so on. These expenses can be charged to costs, and at the same time can help private owners to mobilize their employees, reduce the tax burden, and lower business risks and welfare burdens. Enterprises can win good overall benefits with lower cost expenditure.
7. Do enough "sales settlement" of the article
Select different sales settlement methods, delay the time of revenue recognition. Enterprises should be based on their actual situation, as far as possible to delay the time of revenue recognition. Deferring taxes can bring unexpected tax savings.
There are many commonly used tax avoidance methods, but they are generally no more than: the use of national tax incentives, transfer pricing, costing, financing and leasing.
8. Use of tax incentives
The promulgation and implementation of the new tax law will be the power of tax relief to the State Council, to avoid the phenomenon of too much tax relief too chaotic. At the same time, the tax law and in the form of law provides for a variety of tax incentives, such as: high-tech development zones of high-tech enterprises to reduce the tax rate of 15% of the income tax; new high-tech enterprises from the year of commissioning income tax exemption for two years; the use of "three wastes" as the main raw materials of the enterprise can be reduced or exempted from income tax within five years; Enterprises and institutions conducting technology transfer and its related consulting, services, training, etc., annual net income of less than 300,000 yuan are temporarily exempted from income tax, and so on.
Enterprises should strengthen the study of preferential policies in this area, and strive to adjust the income of enterprises to enjoy a variety of tax incentives, maximize tax avoidance, and grow the strength of enterprises. At the same time, the economic development zones around the country such as spring, they opened the investment conditions are very attractive, most of them are to reduce the corporate income tax for a number of years, reduce a variety of fees and other conditions to attract capital, technology and talent. If your enterprise is a high-tech industry or encouraged by the industry, such preferential conditions of course become one of the priority factors for enterprises to avoid the tax.
9. Pricing transfer
Transfer pricing is one of the basic methods of tax avoidance, it refers to the economic activities of the two sides of the enterprise in order to share the profits or transfer profits in the process of product exchange and sale, not in accordance with the market price, but according to the fair price, but according to the same interests of the inter-enterprise **** and the pricing of the product method. Using this pricing method product transfer price can be higher or lower than the market fair price, in order to achieve the purpose of less or no tax.
The tax avoidance principle of transfer pricing is generally applied to related enterprises with differences in tax rates. Through transfer pricing, part of the profits of the enterprise with a high tax rate are transferred to the enterprise with a low tax rate, which ultimately reduces the total amount of tax paid by the two enterprises.
10. Apportionment of expenses
Each expense incurred in the process of production and operation of an enterprise should be amortized into the cost according to a certain method. Apportionment of expenses means that the enterprise in the premise of ensuring the necessary expenditure of expenses, find ways to find a balance from the accounts, so that the costs are amortized into the cost of the largest possible amortization, so as to achieve the maximum tax avoidance.
Commonly used principles of cost sharing generally include actual cost sharing, average amortization and irregular amortization. With a careful analysis of the depreciation calculation method, we can summarize the general rule: no matter which apportionment is used, as long as the expenses are amortized into the cost as early as possible, so that the greater the expenses amortized into the cost at an early stage, then the more it can maximize the purpose of tax avoidance. As to which apportionment method can help the enterprise to realize the maximum tax avoidance purpose, it is necessary to calculate, analyze and compare according to the time and amount of the expected expenses and finally determine.
11. Financing tax avoidance
This principle is to utilize certain financing techniques to achieve the highest level of profit and the lowest level of tax burden. Generally speaking, there are three main channels for enterprises to raise funds for production and operation: 1) self-accumulation; 2) borrowing (loans from financial institutions or bond issuance); and 3) stock issuance. Self-accumulation of bonuses is the enterprise after-tax distribution of profits, and stock issuance should be paid dividends is also as a way of after-tax profit distribution, both of which can not offset the income tax payable for the current period, and thus fail to achieve the purpose of tax avoidance.
Interest expenses on borrowing are deducted from pre-tax profits, which can offset profits and ultimately avoid taxes.
12. Asset Leasing
Leasing is an economic behavior in which the lessor leases an asset to the lessee for a period of time specified in a deed or contract on condition of receiving rent. From the lessee's point of view, leasing can avoid the burden of purchasing machinery and equipment and the risk of being protected from the obsolescence of the equipment, and because the rent is deducted from the pre-tax profit, it can be offset against the profit and achieve tax avoidance.
How, the above method we all remember?
The eighth point of the text on the tax incentives park, you can handle the approved collection of sole proprietorships, approved after the comprehensive tax burden of about 3%, or limited liability company tax return, the return ratio is high enough to the local retention of 90%, and the local government to cooperate with the local government is fully compliant and reasonable. Detailed private chat or attention to "preferential tax" work Zonghao understand