Is it legal to save taxes?

Tax saving means that taxpayers make full use of a series of preferential policies, such as tax threshold, tax reduction and exemption, to handle financial, business and transaction matters with the lowest tax burden under the premise of not violating the legislative spirit of tax law.

Reasonable tax saving form:

1. Change the organizational form to save taxes.

In the process of enterprise formation, there are often many ways to choose from. In different selection methods, for business operators, they can often get different benefits, and there is a tax problem in these benefits. For example, for the parent company, whether to set up a subsidiary or a branch, the interests are very different. A subsidiary is an independent legal person in form, accounting for its profits and losses independently, while a branch is not an independent legal person, and its profits and losses should be consolidated with the holding company (parent company) for tax purposes. Generally speaking, if the established company can make a profit from the beginning, it is more advantageous to set up a subsidiary; It will be more beneficial to form a company if it loses money in the initial stage of operation.

2. Realize tax saving through financial planning.

In the process of accounting, enterprises choose accounting methods to reduce their tax obligations. For example, "first-in, first-out method", "last-in, first-out method" or other methods can be used in material procurement cost accounting; There is an optimal scheme to choose the depreciation method of fixed assets of enterprises, so that the profits realized by enterprises in the current year or across years can meet the requirements of tax saving.

3. Use the preferential tax clauses in the tax law to save taxes.

In many countries, in order to ensure the uniformity and flexibility of tax laws and make taxes better meet the needs of economic situation, the state has stipulated many preferential tax measures. Reasonable use of these preferential terms can achieve the purpose of saving taxes.

4. Analyze the tax saving methods of enterprises with the help of other platforms.

As taxpayers, enterprises can make an overall analysis of their own situation on the third-party platform through pre-planning and arrangement of investment, operation and financial management activities within the scope permitted by law, so as to obtain tax benefits brought by reducing tax burden as much as possible.