How to reasonably avoid tax enterprises

In practice there are different tax avoidance methods for different tax objects, one of the basic methods is the use of connected transactions, take the form of transfer pricing, that is, the associated enterprises to *** with the acquisition of more profits to higher or lower than the normal market price of the transaction of products or non-products transfer, in this transfer, the transfer price of the product according to the wishes of both parties, in order to achieve the purpose of less tax.　In the case of inconsistency in the tax burden borne by related companies A and B, if the tax rate borne by company B is higher than that borne by company A, related company B may, by means of some kind of covenant, increase the profits of company A and decrease the profits of company B, so as to minimize the tax burden borne by them * * * together as well as that borne by each of them. In the case of inconsistent tax rates between companies within a company, transfer pricing is generally used to avoid tax by shifting major profits to companies with lower tax rates.　　If the full use of international tax havens, special economic zones and tax incentives, through the transfer pricing method, will be the high-tax area of the company's operating income by way of lowering the sales price into the low-tax area of the company, the effect of tax avoidance is more obvious, the current multinational corporations to avoid tax mainly take this clock way. For example, many joint ventures in China use the characteristics of Hong Kong's low income tax to set up subsidiaries in Hong Kong, and then sell the goods to the Hong Kong subsidiaries at a low price, so as to achieve the purpose of tax avoidance.　　Through the transfer pricing method, first, through the affiliated enterprises will be allocated to the cost of the higher tax burden of the region, effectively offsetting profits, thereby narrowing the basis of income tax. The second is to transfer profits to tax havens where the tax burden is lower through affiliated enterprises. As an independent accounting enterprise, "purchase raw materials, equipment, talents and technology at high prices" and "sell products at low prices", the result is that the book profit is reduced or even loss, thus effectively saving income tax. This tax avoidance should be noted that the transfer method must be reasonable and legal, otherwise it will not achieve the purpose of tax avoidance, but may form tax evasion.　　For example, a leather and plastic products Co., Ltd. is mainly engaged in the production and sale of various types of women's sandals. The company's production equipment, raw materials are provided by the Taiwan A company, the production of all products are also sold to the Hong Kong B company (for the A company's subsidiaries). The company started the first year, book sales revenue of 460,000 yuan, cost of sales of 1.22 million yuan, a net loss. Through the investigation of the company's operations and losses, found that the company produced a pair of women's sandals cost is 23. 44 yuan; and the company are to each pair of shoes equivalent to the price of RMB 8. 90 original sold to the Hong Kong B company (recognized as its affiliates), resulting in the inversion of sales revenues and cost of sales. In the case that the enterprise could not provide the relevant materials about the business transactions between him and the related enterprises, the tax authorities decided to use the method of "cost + expense + reasonable profit" to make adjustments in accordance with the provisions of the tax law. After adjusting the sales revenue according to the conversion of the company's book cost, book other expenses and the approved profit margin, the company is considered to have made a profit in the first year and should pay income tax.　　Whether inter- or intra-corporate, engaging in tax avoidance by transferring product pricing methods is fundamental to utilizing profit margin adjustments. In other words, transfer pricing is the allocation of the residual value of the products created within each of the transferring parties to arrange combinations between each other in order to maximize their control in their own hands or in the hands of affiliated enterprises, but the and rationality and legality of the means should be given considerable attention.　　Other reasonable tax avoidance methods In the transfer pricing tax avoidance at the same time, you can utilize tax incentives, set up suitable for tax avoidance of the enterprise structure. For example, for international tax havens or low-tax zones, special economic zones or business development zones and their tax incentives, many enterprises avoid tax through the following ways to reduce the tax burden.　　First, the establishment of a permanent business organization Many investment and business enterprises take advantage of the preferential policies of special zones or economic development zones to nominally locate their enterprises in special zones or economic development zones, while their actual business activities are not conducted in the zones or not mainly in the zones. In this way, the enterprise in the non-special zone to obtain operating income or business income, you can enjoy special zones or economic development zones, tax relief care, special zones or business development zones outside the profits can be transferred to the headquarters of the domestic enterprises to reduce tax.　　Secondly, the fictitious trust property enables the principal to act according to its will, forming the separation of the principal and the trust property, but the operation of the trust property is categorized under the name of the enterprise in the international low-tax zone, special zone or business development zone, so as to achieve the purpose of evading the tax obligation.　　In addition, full study of tax regulations, through the business mode of operation, financial rationalization, can also achieve the purpose of tax avoidance. For example: 1. When a large transaction is at the crossroads of two tax years (i.e., the end of the year and the beginning of the year), according to the principle of accounting treatment under the accrual system, the date of the transaction can be appropriately postponed to the next year as far as possible, so as to make part of the income tax deferred for one year to pay, and obtain the benefits of the profit side. If the tax payment of 1 million yuan is postponed for one year, about 100,000 yuan of tax can be avoided according to the calculation of 10% annual interest.　　2. According to China's tax law, an enterprise that incurs an annual loss can make up for it with the next year's income tax. If the income of the next year is not enough to make up for the loss, it can continue to make up for the loss year by year, but the longest period shall not exceed 5 years. Certain enterprises can take the way of acquiring loss-making enterprises, transferring profits to loss-making enterprises, thus avoiding the obligation of paying enterprise income tax.　　3. For foreign-invested enterprises enjoying the "two-minus-three exemption", they should try to transfer their profits to related enterprises at the initial stage of operation, and try to continue to make up for the profit-making year in which the company started to make profits, and can make up for the losses from the sixth or seventh year. In the second five years of the company's operating life, the profits will be transferred to the enterprise, thus maximizing tax avoidance. It is also possible to acquire this type of business and divert the profits to avoid tax.　　Different tax objects have different ways of avoiding taxes. The managers of the company need to study all economic phenomena related to tax collection and payment activities or consult tax experts in order to find out ways and means to do so without legal hassles. Company managers should study the knowledge of the law, use the full range of tax benefits, master various methods and participate, apply and improve them in practice. Through the enterprise organization and business mode, structure adjustment and reasonable financial arrangements, in order to achieve the maximum degree of tax avoidance purposes, within the scope of the law for the enterprise to maximize the benefits.