Understand and follow the tax laws in China: First of all, you need to have a comprehensive understanding of the tax laws in China, especially the local tax policies in Guangzhou. China's tax system is different from that of many countries, which may require professional financial advice.
Choose the right enterprise form: In Guangzhou market, foreign companies can choose different enterprise forms, such as WFOE, JV, representative office, etc. Different enterprise forms have different tax regulations, and choosing the right enterprise form can have an impact on tax revenue.
Reasonable price planning: For related party transactions, China tax authorities strictly supervise the transfer pricing. In order to avoid being adjusted by tax authorities, transfer pricing must be planned in advance.
Understand and apply preferential tax policies: In order to attract foreign investment, China government will provide various preferential tax policies. Understanding and applying these policies can help enterprises reduce their tax burden.
Formulate tax compliance strategy: Ensure that all your business activities in China comply with China's tax laws and regulations. Violation of tax laws may lead to fines, and may even affect the operation of the company.
Establish an effective financial management system: An effective financial management system can help you monitor and manage the company's financial activities, including tax issues. A good system can help you keep tax compliance, and at the same time help you find and use tax benefits.
Generally speaking, effective fiscal and tax planning means understanding and abiding by tax laws, rationally choosing enterprise forms, planning prices, making use of preferential tax policies, formulating tax compliance strategies and establishing effective financial management systems. You may need professional financial advice to help you realize it.