1. Changing into a "foreign" enterprise
China's foreign-invested enterprises to implement tax tilted policy, so the transition from domestic enterprises to Sino-foreign joint ventures, cooperative enterprises and other modes of operation, 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. All of them can enjoy a greater degree of tax incentives. Small and medium-sized enterprises in the choice of investment location, you can purposefully choose the above specific areas for investment and production operations, so as to enjoy more tax benefits (readers can refer to the content of this section of the article "Push open the door of the "offshore oasis").
3. Entering special industries
For example, tax exemptions for the service industry: child care centers, kindergartens, nursing homes, and welfare institutions for the disabled are exempted from business tax on the parenting services they provide.
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 have placed "four disabled persons" to account for more than 35% of their production staff are exempted from paying business tax on business operations that fall within the scope of the business tax item "service industry" (except for advertising).
Labor services provided by individuals with disabilities are exempted from business tax.
4. Doing the article of "administrative expenses"
Enterprises can increase the withdrawal rate of bad debt reserve, bad debt reserve is to be entered into the administrative expenses, which reduces the profit of the year, 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 used and the amount of depreciation 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 is not permitted by national policy, and although this method is not uncommon in today's business world, we do not advocate it 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, medical insurance for employees, the establishment of workers' pension funds, unemployment insurance funds and employee education funds and other funds, 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" article
Select different sales settlement methods, delay the time of revenue recognition. Enterprises should delay revenue recognition as much as possible according to their actual situation. Deferring taxes will bring unexpected tax savings to the enterprise. There are many commonly used tax avoidance methods, but they are generally no more than the following: the use of national tax incentives, transfer pricing method, costing method, financing method and leasing method.
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 overly 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 of 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 in five years; the use of "three wastes" as the main raw materials of the enterprise. Enterprises and institutions conducting technology transfer and its related consulting, services, training, etc., with 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 strengthen the strength of enterprises.
At the same time, the economic development zones around the country are now springing up, 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 different 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 that the necessary 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 is the most effective in helping enterprises to maximize tax avoidance, it needs to be calculated, analyzed and compared according to the time and amount of the expected expenses and finally determined.
11. Tax avoidance through nominal financing
This principle is to utilize certain financing techniques to achieve the highest level of profit and the lowest level of tax liability. Generally speaking, the enterprise production and operation of the funds required by three main channels: 1, self-accumulation: 2, borrowing (financial institutions or bonds); 3, the issue of shares. 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 current income tax payable, 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, leasing can avoid the burden of purchasing machinery and equipment and the risk of being protected from equipment obsolescence, and because the rent is deducted from pre-tax profits, it can be offset against profits and achieve tax avoidance.
1. Sales revenue (output tax)
(a) the issue of goods, not according to the principle of "accrual" on time sales revenue, but to receive payment for the realization of the basis of sales. Its performance: the issuance of goods, the warehouse keeper to keep accounts, the accountant does not keep accounts.
(b) the transfer of raw materials, grinding account not to record "other business income", but to record "non-operating income", or directly grinding off "accounts payable", do not provide for "sales tax".
(3) the sale of goods in the form of "advance receipts", the products (commodities) issued not on time to transfer the sales revenue, long-term accounts, resulting in the input tax is greater than the output tax.
(d) industrial enterprises manufacturing large-scale equipment, the warranty deposit for a long time on the books without transferring sales revenue.
(e) out-of-the-money income is not recorded as sales revenue, not sales tax. Such as: default on collection and payment, most companies receive default on payment, increase bank deposits to reduce finance costs.
(F) three packages of income "not recorded sales revenue. Product "three packages" income refers to manufacturers in addition to the designated maintenance point to pay the cost, there are a certain percentage of the business to pay the "three packages of fees" (including accessories), warranty points and business accounts do not record income, a considerable portion of the accessories are recorded in the "custody of goods". "The company's business is to provide the best possible service to its customers.
(VII) scrap, edges and corners of the income is not recorded. Mainly industrial enterprises, metal trimmings, iron Shaw, copper Shaw, aluminum Shaw, scrap, has been utilized packaging, liquids and so on. These incomes are mostly cash incomes and are acquired by self-employed persons. Taxpayers deposit these incomes into private accounts, a few should be used on employee benefits, such as: canteen subsidies, very few for the payment of management fees, most of which are used for food, drink and gifts.
(viii) Rebate sales. The market economy under the changing marketing methods, rebate sales is the manufacturer to occupy the market, the businessman operating the factory's products below the market price of the benefits of compensation, is an effective means of new products to occupy the market, is an integral part of the marketing strategy. There are two main forms: First, the businessman sells a certain number of products, and on time to pay off the purchase price, the manufacturer of a certain percentage of cash back. The second is the return of goods, products, or accessories. Merchants receive these cash, in kind, cash is not accounted for as extra income, not to mention the "input tax out", the formation of off-the-books business.
(ix) discount income. Discounts that is, discounts and discounts, similar to the rebate sales, the difference is that: discounts are occurring in the realization of the sale of time, on the invoice or another red ticket to reflect the sales method. In accordance with the tax law, the amount of discount stated in the invoice, according to the actual receipt of income. If a separate red ticket is issued, no offsetting of revenue is allowed. In practice, taxpayers often use the red ticket to offset revenue, the offsetting revenue in cash to the purchaser, the purchaser does not record out-of-the-money income, resulting in underpayment of tax.
(J) packaging deposit overdue (full year) not to be transferred to the sales revenue.
(xi) engaged in mixed sales of production and business and taxable services, taxpayers bookkeeping to choose the method of bookkeeping and tax declaration in their favor.
(xii) The sale of used fixed assets, including motorcycles, automobiles and yachts subject to consumption tax, etc., which do not meet the requirements for tax exemption, are not subject to VAT at the rate of 6%, but are directly recorded as non-operating income.
(xiii) Artificially adjusting revenues and postponing the recording of realized revenues in order to adjust the revenue and profit plan of the enterprise.
(xiv) Deemed sales without recording revenue. Enterprises with raw materials, finished goods and other long-term investment, products (commodities) as gifts or samples for exhibition, not deemed sales revenue, not write off the sales tax.
(xv) parent company, under a number of subsidiaries, involving value-added tax invoices, general invoices part of the business all in the parent company accounting, and any other by the subsidiaries, the subsidiaries pay a certain amount of management fees to the parent company each year.
(xvi) small-scale taxpayers in order to achieve the general taxpayer standards, after the determination, less than the standard will be the annual inspection, to take a number of general taxpayers to each other to issue VAT invoices, the payment of goods also pay each other, but it is a point, several invoices issued to each other's business are not value-added, and these are some of the low tax burden of an enterprise reason.
(xvii) The VAT invoice that has been issued is lost, and ordinary invoices are issued without recording the income.
2. Input tax
(xviii) Commercial enterprises register for tax and recognize VAT general taxpayers according to industrial enterprises, and deduct input tax not according to payment vouchers but according to raw material entry slips.
(xix) When purchasing goods, the industry did not accept the goods into the warehouse, or utilized the bill of materials instead of the bill of materials, and declared the deduction. Business did not pay the money, self-examination of deductions, or a large amount of cash receipts, first increase the "cash" after the way to sit on the cash to let the other side to open a cash receipt back for deductions, these businesses are not a lot of forensic evidence is difficult to find out.
(xx) endorsed bills of exchange for prepayment, the use of modern technology to alter the multiple copies as payment vouchers, used to fraudulently offset.
(xxi) Taxable labor services without payment declared for deduction (commissioned processing, water, electricity, freight).
(xxii) Non-taxable items such as construction in progress, including the purchase of fixed assets declared for offsetting input tax, non-taxable items such as raw materials received for construction in progress or used for the welfare of the unit, are not subject to the transfer of input tax.
(xxiii) Acquisition of special invoices for inputs, the invoicing party, the recipient party is not the same, the ticket goods, the ticket money in a different place to declare the credit.
(xxiv) Commercial enterprises do not report the grinding of accounts to the tax authorities for approval, unauthorized tax deduction.
(xxv) using prepayment vouchers (large checks) multiple copies, many times as payment vouchers, to declare deductions.
(xxvi) Incomplete issuance of transportation invoices, discrepancies between tickets and goods, or obtaining false invoices for deduction.
(xxviii) In order to achieve the purpose of deduction, there is no transport business, go to the Transportation Management Office, Freight Transportation Center, the Local Taxation Bureau and other units of invoices to declare deduction.
(xxviii) Railway passenger invoices (baggage tickets) as transportation invoices for the purpose of declaring deduction.
(xxix) The most typical is that individual enterprises will haul garbage invoices as transportation goods invoices to declare deduction.
(xxx) Input invoices are lost and still offset the input tax amount.
3. Taxes payable
(xxxi) The withholding tax has been pending for a long time.
(xxxii)After the audit and tax assessment, tax inspection and investigation of VAT and income tax, no adjustment is made to the accounts, the inputs that should be transferred out are not transferred out, and the income that should be adjusted is not adjusted to the accounts, resulting in the secret refund of the explicit levy. In some cases, the VAT paid is credited to the input tax.
(xxxiii) Welfare enterprises purchased raw materials for transfer or direct sale, they do not have the production capacity, commissioned the processing of local sales, but also according to the self-produced products to declare fraudulent tax rebates.
(xxxiv) Welfare enterprises do not obtain VAT invoices, thinking that it is a tax rebate anyway, resulting in a high tax burden and more tax refunds.
(35) Welfare enterprises purchasing goods use white slips to cheat high tax burden tax refund.
4. Enterprise Income Tax
(xxxvi) The division between central and local enterprise income tax is blurred, and taxpayers, for the sake of convenience, only apply for tax registration at the local tax. Especially since the implementation of each 50% enterprise income tax in 2002, due to the national and local tax information does not **** enjoy, resulting in the taxpayers newly licensed in 2002 did not all the taxpayers to the national tax for tax registration.
(37) The contracting fees collected by enterprises are not credited to income, and the profits and losses from long-term investments and joint ventures are not reflected in the accounts, but are always repeated in the current accounts.
(xxxviii) Income from the purchase of stocks and bonds is not transferred to investment income on time.
(xxxix) Without the approval of the tax authorities, withdrawing and paying management fees.
(xl) Incurring large renovation and decoration costs as well as amortization of pending expenses without the approval of the tax authorities.
(xlii) Over-accruing salaries payable and surrendering the balance to the competent authorities at the end of the year.
(xliii) Units that do not contribute to the co-ordination fund, and accrue the co-ordination fund for a long period of time without contributing to it.
(43) Purchase of land for expansion and depreciation of the land as a fixed asset.
(xliv) Inventories of fixed assets and current assets are not treated as profit and loss.
(xlv) Payment of utility bills on a blank check.
(xlvi) Purchase of false invoices for bookkeeping.
(xlvii) Personal income tax that should be borne by individuals is recorded in administrative expenses - other.
(xlviii) Apportionment of expenses by the competent authority to a subordinate, who has only bookkeeping payment vouchers and no original vouchers.
(XLIX) Postal and telecommunication industries collected postal and telephone charges without issuing invoices in accordance with the regulations, and used postmarked white slips and collection and payment notes to customers.
(50) Reimbursement of invoices and tax stamps that do not belong to their own organizations.
(Fifty-one) Reimbursement of a large number of bookkeeping vouchers and a small amount of original vouchers.
(fifty-two) Purchase of fixed assets is included in expenses, or fixed assets are broken down and invoiced to expenses.
(53) Loan interest on construction in progress is charged to administrative expenses or financial expenses.
(54) Property losses are directly deducted before tax without the approval of the tax authorities.
(55) Losses on current assets are directly credited to non-operating expenditures after approval by the local tax authorities, and the portion involving value-added tax (VAT) is not subject to input tax reversal.
(56) Subsidy income is not consolidated into taxable income and is directly credited to capital surplus or surplus.
(57) Over-expenditures on operating expenses and advertising expenses are placed in other accounts for charging, such as: handling fees, travel expenses, conference expenses, and harmful subsidies.
(58) Without the approval of the tax authorities, the three new costs (new products, new technology, new technology development costs) are charged before tax.
(59) Applying for reduction or exemption of enterprise income tax when the certificates of school-run enterprises and welfare enterprises are not inspected annually.
(60) Tax audits reviewing the increased income, which is part of the time difference, only make up the tax without adjusting the accounts, resulting in explicit levy and implicit refund.
The most critical issue of reasonable tax avoidance is the level of practice of accounting personnel, which is a guarantee of the success of tax planning, but also the reflection of the value of accounting personnel themselves. Practice level includes tax policy level and business level.
Generally speaking, the space of tax avoidance planning consists of the following:
1, the use of national tax incentives for reasonable arrangements to achieve the purpose of tax avoidance
2, the use of optional accounting methods,
3, from which the most favorable method of tax payment in order to achieve the purpose of tax avoidance
4, the use of tax laws and regulations, the policy of existing The defects, loopholes and deficiencies in tax regulations and policies,
5, to achieve the purpose of reducing the tax burden for a certain period of time.
It can be seen that the successful tax planning program is "the result of the battle of wits and courage", so the accounting staff must have a high level of tax policy, with the ability to deep processing of tax policy, in order to ensure the legitimacy of the tax planning program.
Good business level is another basic requirement for the success of tax planning. Good business level needs to have solid theoretical knowledge and rich practical experience
Practice experience to support. Solid theoretical knowledge requires that the practitioner in addition to the law, tax policy and accounting is quite proficient, should also be well versed in business, finance, insurance, trade and other aspects of knowledge; rich practical experience requires that the practitioner in a very short period of time to grasp the basic situation of the customer, the tax matters, such as tax links, planning intentions, etc., in order to obtain a true, reliable and complete planning information on the basis of the planning point of entry to the planning, the development of the correct planning steps, the planning of the tax planning process, and the planning of the tax planning process. Based on the real, reliable and complete planning information, we can choose the right entry point for planning, make the right planning steps, and design effective operation programs for different objective situations.
Accounting personnel should continuously improve their policy level and business level in the process of practice, so that China's tax planning from the shallow level to the deep level, from the primary stage to the advanced stage.
Legality is a prerequisite for tax planning. However, in the accounting process will inevitably encounter: some of the company president of certain tax-related matters, tax-related links can not distinguish between legal and illegal boundaries, often put forward a number of requirements affecting the legitimacy of tax planning; some companies want to deviate from the purpose of tax legislation, tax avoidance through the legalization of the planning program; and the company's president of the violation of tax policies and regulations into the planning program. In the face of the above situations, the accounting personnel must maintain the authority of the tax law with a clear attitude, and must not give up the principle and accommodate the company for the sake of the company's interests and to keep their jobs, not to mention being driven by certain interests and succumbing to the pressure of the company's president. Adhere to the principle of legality, good professional ethics throughout the whole process of tax avoidance planning. As long as there is tax, the existence of tax avoidance is unavoidable, which is not a phenomenon only in one country, but often with an international nature. However, as a taxpayer to carry out tax avoidance activities, must not violate the tax law as a prerequisite, must not turn tax avoidance into tax evasion or tax evasion. Only by avoiding this situation can we realize the success of reasonable tax avoidance and legal tax payment.
(1) The first condition for taxpayers to reasonably avoid taxes
(1) Taxpayers must have certain legal knowledge, be able to understand what is legal and what is illegal, and draw the line between legal and illegal, and in general ensure the legality of their own economic activities and related behaviors.
(2) Taxpayers should have a deep understanding of the tax laws and the specific methods used by the government to collect taxes, and be aware of the flaws and loopholes inherent in tax administration.
(3) The taxpayer must have a scale of operations and income that is worth the cost of effective tax avoidance. This is because, in general, reasonable tax avoidance should be carried out by the relevant specialized personnel for tax planning, which is a cost to be paid.
(ii) the basic conditions of reasonable tax avoidance by taxpayers
(1) grasp and understand the basic situation of the enterprise.
In tax avoidance planning, it is necessary to understand the basic situation of the enterprise are:
①The form of organization of the enterprise.
Different forms of business organizations have different tax treatment. Understanding the form of business organization allows you to formulate targeted tax avoidance plans for different forms of business organization.
②Financial situation.
Enterprise tax planning is to reasonably and legally save tax, only a comprehensive and detailed understanding of the real financial situation of enterprises, in order to develop a reasonable and legal enterprise tax planning.
③Investment intention.
Investment can sometimes enjoy tax incentives, the amount of investment of different sizes will sometimes have different tax incentives; the amount of investment is often associated with the size of the enterprise - registered capital, sales revenue, total profits have a great relationship between the tax treatment of different sizes of enterprises and preferential policies are sometimes often very large disparities in tax avoidance planning for enterprises. The impact is crucial.
④Attitude toward risk.
Different styles of business leaders have different attitudes towards tax avoidance risk, pioneering leaders are often willing to take greater risks to save the most tax, while prudent leaders often want to save tax with minimal risk. Understanding the attitudes of different businesses to risk will allow you to develop a tax avoidance plan that better meets the requirements of your business.
5 Corporate tax payments.
Understanding the previous and current tax situation of the enterprise, especially the tax return and tax payment, will be of great
help in the formulation of the enterprise's future tax avoidance plan.
(2) Understand the situation of the legal representative of the enterprise.
When planning for tax avoidance, it is necessary to understand the basic situation of the enterprise's legal representative:
①age, ②marital status, ③children and other dependents,
④financial income and expenditures, ⑤personal assets and their investment.
(3) Collecting and Preparing Relevant Information
Both external and internal tax avoidance planners must prepare relevant information for reference. These materials can be:
① Obtaining free information on tax laws and regulations through tax authorities,
② Inquiring about the relevant policies of governmental authorities through libraries,
③ Collecting and inquiring about relevant materials through electronic websites,
④ Subscribing to and purchasing professional journals and publications issued by the relevant organizations,
⑤ Obtaining necessary information through cooperating with intermediaries, tax authorities, etc.
Collection and preparation of relevant materials
These materials are available to both external and internal tax avoidance planners, tax authorities, etc.
⑤ Obtaining necessary internal information through cooperation with intermediary organizations, tax authorities, etc.
(4) Formulation of Tax Avoidance Plan
The tax avoidance planner, when formulating the tax avoidance plan, must specify the specific steps, methods, precautions and the laws, regulations and policies based on which the tax is to be avoided, etc., which are listed on the tax avoidance plan, and must also attach the positive and negative factors affecting the avoidance of tax and the factors that may change in the future to the tax avoidance plan.
(5) Selection and Implementation of Tax Avoidance Plan
There may be more than one tax avoidance plan for a tax event, therefore, after the plan is formulated, it is necessary to screen the tax avoidance plan and select the optimal plan. The following factors are considered in the screening process:
1) Select a tax avoidance plan that saves more tax or provides greater financial benefits
2) Select a tax avoidance plan that has lower tax avoidance costs
3) Select a tax avoidance plan that is more convenient to implement.
Screening out the optimal tax avoidance plan, it can be put into practice; in the process of implementation, we must pay attention to timely feedback, in order to be able to control and revise.
How can taxpayers legally and reasonably avoid taxes when investing? Mainly from the following aspects:
1. Reduce tax burden by choosing different industries for investment.
The tax burden of different industries is treated differently in the tax law, some do not have any tax incentives, while some industries have a large number of tax exemptions and preferential policies. So investors will be able to avoid tax by choosing industries with light tax burden when making investment decisions.
2. Choose different nature of enterprises to invest in order to reduce the tax burden.
In China's tax law and its specific implementation, the tax burden of domestic and foreign enterprises is inconsistent, the tax burden of ordinary enterprises and joint-stock companies is also consistent, and the tax burden of general joint-stock companies and listed companies is different. Usually, foreign enterprises have a large number of tax incentives, listed companies than unlisted companies, joint-stock companies than ordinary enterprises have tax relief policies.
3. Choose different locations for investment to reduce tax burden.
In China's tax law, enterprises in special economic zones and coastal economic development zones enjoy a lot of tax incentives than mainland enterprises, so their tax burden is much lighter.