Taxation is one of the important financial costs of enterprises, and reasonable tax avoidance can effectively reduce the financial costs of enterprises and improve profitability. However, tax avoidance does not mean tax evasion. We must abide by national laws and regulations and must not violate tax laws and regulations. The following are some tax avoidance measures: 1. Rational use of preferential tax policies: enterprises can make rational use of preferential tax policies formulated by the state, such as enterprise income tax concessions and value-added tax deductions, to reduce tax burden. 2. Build a cross-border tax structure: enterprises can avoid double taxation by setting up legal overseas companies and make reasonable arrangements and plans for cross-border investment by using international tax agreements. 3. Looking for tax advantages from multiple angles: Enterprises can look for suitable tax advantages from legal, financial and commercial perspectives, such as taking advantage of tax loopholes in the financial structure and mastering reasonable tax-related skills. However, enterprises must pay attention to avoid fictitious transactions, exceeding reasonable expenses, evading transfer pricing and other violations of tax laws and regulations, otherwise they may face severe penalties such as fines and late fees. Therefore, enterprises need to understand the national tax policies and regulations and make reasonable tax planning under the guidance of tax agencies.
How do enterprises evaluate whether they have reached the standard of reasonable tax avoidance? Enterprises need to evaluate whether they have reached a reasonable tax avoidance standard according to their own operating conditions and tax burden. Enterprises can compare the difference between the actual tax paid and the tax payable, and the tax burden level of enterprises in the same industry. If the corporate tax burden is relatively high, then reasonable tax avoidance measures need to be taken.
Reasonable tax avoidance is one of the important means for enterprises to legally reduce financial costs. Enterprises can avoid tax by making rational use of preferential tax policies, constructing cross-border tax structure and finding tax advantages from multiple angles, but they must abide by national laws and regulations. Enterprises need to understand the national tax policies and regulations and make reasonable tax planning under the guidance of tax agencies.
Legal basis:
Article 27 of the Enterprise Income Tax Law of People's Republic of China (PRC) can exempt or reduce the following income of an enterprise:
(1) Income from agriculture, forestry, animal husbandry and fishery projects;
(two) the investment and operating income of public infrastructure projects supported by the state;
(three) income from engaging in qualified environmental protection, energy saving and water saving projects;
(4) Income from qualified technology transfer;
(5) Income as stipulated in the third paragraph of Article 3 of this Law.