The direct purpose of international tax planning is to reduce the overall tax burden. The ultimate goal of tax planning for multinational corporations is to minimize the tax burden and maximize the overall interests of the multinational corporation in international operations.
The specific purposes usually include:
(1) Reduce tax burden. Reduce the overall tax burden through tax planning for multinational companies in various countries.
(2) Deferred tax payment. Get the time value benefits of taxes by planning tax time.
(3) Reduce tax costs and increase tax planning benefits accordingly.
(4) Achieve zero tax-related risks. Properly perform tax obligations, ensure timely and full payment, and avoid tax risks.
Legality:
The tax laws of various countries are the legal guidelines for governments to clarify the rights and obligations of taxpayers. The tax planning of multinational companies is based on the premise of complying with the tax laws of various countries and taking advantage of the differences in taxation between countries. Make tax plan choices to avoid the occurrence of any tax costs beyond statutory tax obligations.
If it deviates from legality, it may evolve into tax avoidance or tax evasion. Multinational companies will face tax-related risks and be punished by governments of various countries, bringing double losses to the economy and reputation of the company.