(1) Depreciation of fixed assets and tax avoidance
Depreciation expenses are extracted in different proportions and for different periods of time, which affects how much income tax is levied and when it is levied. Accordingly, the company can choose appropriate depreciation policy to achieve the purpose of tax savings. First, the use of extended depreciation of the time difference arising from the tax savings, such as the assumption that an enterprise's equipment to start depreciation of the year and the company began to profit the same year, the first two years of income tax exemption, after three years of half levy, in order to achieve the purpose of tax savings, you can use the extended depreciation period caused by the time difference in the reduction of the tax burden. The second is to utilize the time difference caused by shortening the depreciation period to save tax. This method is applicable to profitable enterprises in the mature stage.
(2) Using the method of buying a loss-making company to save tax
The tax law stipulates that losses are allowed to be carried forward, and a profitable enterprise buys a registered company with accumulated losses, and transfers the profits to the accounts of the loss-making company through merger or other methods. This ostensibly offsets the losses, but in essence conceals the profits and reduces the tax burden for income tax purposes. It is also possible to change the business of the loss-making company so that it operates the same profitable business as the Company, and to utilize its accumulated losses to offset future profits, which can also achieve the purpose of tax saving.
(3) Tax saving by utilizing tax incentives
The state has stipulated tax exemptions and reductions in the promulgation of each tax, and the enterprises can consider the tax incentives given by the state in terms of taxpayer's identity, location of establishment, and direction of investment to determine the production and operation behaviors of the enterprises. For example, our country to attract
Introduction of foreign capital, the introduction of technology, foreign-invested enterprises to implement preferential tax policies. Taxpayers through the negotiation of joint ventures, introduction of capital, restructuring and a series of ways to realize the domestic enterprises to the Sino-foreign joint ventures, co-operative enterprises, such as the transition mode of operation, is not a good way to get to enjoy more tax reductions, tax exemptions. Domestic-funded enterprises can enjoy "two exemptions and three halves" from the profit-making year if they run a new joint venture with foreign investors. In the state-recognized high-tech industrial zones, "old, few, border, poor" areas of investment have the corresponding tax incentives, enterprises can take advantage of these incentives to invest in, can achieve the purpose of tax savings.
Again, at this stage, China encourages the reception of laid-off workers. The new urban labor and employment service enterprises, the year the placement of unemployed more than 60% of the total number of employees, the competent tax authorities review and approval, can be exempted from income tax for three years. After the expiration of the exemption period, if the number of unemployed persons placed in the enterprise in the same year accounts for more than 30% of the total number of employees in the enterprise, it may, subject to the examination and approval of the competent tax authorities, be entitled to a halving of the income tax for a period of two years. In addition, the arrangement of a certain percentage of disabled personnel can also achieve the purpose of tax savings.
(4) Selection of appropriate forms of organizational structure to save tax
Enterprises are faced with the choice of setting up branches as their business continues to develop and grow. The establishment of branch offices has two options: branch offices and subsidiaries, both of which are very different in terms of taxation. Branch is not an independent legal person, business activities, financial control by the head office, all legal responsibility borne by the head office, its profits to the head office, the head office summarized by the unified tax. Subsidiary is an independent legal person, independent business alone tax, the company is not directly responsible for its legal liability. For example, an enterprise in a high-tech development zone to set up a branch, if the branch is predicted to lose money in a period of time, should set up a branch, so that you can offset the profits of the head office, less to pay corporate income tax. On the contrary, if the projected profit, it is necessary to set up a subsidiary to enjoy the national tax incentives for high-tech development zones.