How to avoid tax in equity transfer

1. Equity transfer and tax-free equity transfer are civil legal acts in which shareholders of a company transfer their shareholders' rights and interests to others for compensation according to law, so that others can obtain equity. Tax avoidance means that taxpayers make use of loopholes in the tax law or methods permitted by the tax law to make appropriate financial arrangements or tax planning, so as to reduce or relieve the tax burden without violating tax laws and regulations. The result is the direct loss of national income, the increase of the cost of using foreign capital, the violation of the principle of fair and reasonable taxation, and the distortion of income and distribution of a country and even society. Its characteristics are not illegal, low risk and high return, planning and anti-tax avoidance. Second, tax avoidance methods There are many ways for enterprises to avoid taxes. Judging from the current situation, the commonly used methods mainly include the following aspects: (1) using tax differences to avoid taxes, and using tax differences between countries and regions to avoid taxes. (2) Take advantage of the loopholes in the tax law itself and the selective provisions in the tax law, such as the tax deduction in the purchase of value-added tax, and the tax calculation method of property tax (ad valorem) is different; Take advantage of the inconsistency and inaccuracy of tax laws; There are also some preferential policies that have no clear time limit. (3) Transfer pricing tax avoidance affiliate AG pays low, or pays low and pays high, and transfers profits, which involves enterprise income tax, business tax or value-added tax. Change the payment of interest and head office management fees, affecting profits; Change of capital contribution, withdrawal of capital contribution, etc. , and tax evasion. (4) Asset lease tax avoidance. For example, in affiliated enterprises, lease high-priced equipment with good benefits and adjust taxable income to minimize the tax burden of enterprise groups with good benefits; For asset leasing between affiliated enterprises, high tax burden can be avoided with low tax burden, such as paying business tax to avoid paying income tax. (5) Tax avoidance in tax havens. Taxpayers use the preferential tax policies of special zones, development zones and bonded areas between countries and regions to set up permanent institutions, transit sales companies or trust and investment companies in these low-tax areas to transfer profits and reduce tax payment. (6) Profit-making sales tax avoidance Profit-making sales reduce the output tax, greatly reduce the sales price in exchange for price advantage, and enhance the market competitiveness of products, but the national tax revenue is affected, which is beneficial to enterprises and unfavorable to tax revenue. (7) Using e-commerce to avoid tax E-commerce refers to the transaction of goods and services by both parties using the Internet and local area network. E-commerce activities have the characteristics of no nationality and no region in transactions, concealment of traders, virtualization of trading places, digitalization of trading information carriers and fuzziness of trading commodity sources. E-commerce provides a safer and more hidden environment for tax avoidance. Enterprises take advantage of the concealment of e-commerce to avoid becoming permanent institutions and resident legal persons and evade income tax; Take advantage of the rapid liquidity of e-commerce to operate in a virtual tax haven and avoid income tax, value-added tax and consumption tax; Use e-commerce to erode the tax base, conceal the import and export of goods and services, and avoid tariffs. Third, the difference between tax avoidance and tax evasion (1) The applicable laws are different, and tax avoidance applies to laws and regulations related to foreign-related economic activities; The latter only applies to domestic tax laws and regulations. (2) The applicable objects are different. The former is aimed at enterprises and individuals such as foreign investment, sole proprietorship and cooperation; The latter are only domestic citizens, legal persons and other organizations. (3) Different behaviors. The former is the taxpayer's use of loopholes and imperfections in the tax law to artificially arrange business and financial activities to avoid or reduce tax payment; The latter is a taxpayer engaged in production and business activities. Before the expiration of the tax payment period, there is an act of transferring or concealing its taxable commodities, goods, other property and income to avoid paying taxes. Under normal circumstances, it does not constitute a crime, but if the circumstances of tax evasion are serious and the means are outstanding, it can constitute a crime of resisting tax. Article 201 of the Criminal Law: A taxpayer who makes a false tax return or fails to make a tax return by deception or concealment and evades paying a large amount of tax, accounting for more than 10% of the taxable amount, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be fined; If the amount is huge, accounting for more than 30% of the tax payable, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years and shall also be fined. Article 202 of the Criminal Law: Whoever refuses to pay taxes by means of violence or threats shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall also be fined not less than one time but not more than five times; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than three years but not more than seven years, and shall also be fined not less than one time but not more than five times the amount of tax refusal. The above is the introduction of how to avoid tax in equity transfer, because of the differences in the choice and application of tax jurisdiction, it will cause unfair taxation; The differences in tax laws and regulations also create conditions for tax avoidance. Generally speaking, tax avoidance does not violate the provisions of laws and regulations, but it is still very harmful, and it will be called empty talk, resulting in imbalance in market competition.