As an accountant, it is particularly important to master some reasonable methods of tax avoidance. According to relevant regulations, enterprises must complete their tax declaration obligations in accordance with the law, regardless of their income. When enterprises face a heavy tax burden, if they can cleverly use tax avoidance methods, they can achieve the goal of reducing their tax burden. This article will give you a detailed introduction to the six major methods for companies to reasonably avoid taxes.
What are the reasonable ways for companies to avoid taxes?
Method 1: Price transfer method
The price transfer method refers to two or more companies with economic interests. In order to obtain more profits and economic benefits, economic entities conduct sales activities at internal prices. To maximize the company's interests, prices must be reasonably planned.
Method 2: Financing method
The financing method is a relatively effective method for enterprises to reasonably avoid taxes. Specifically, it refers to the financing of enterprises through commercial credit, bank loans and other methods, so that the tax rate can be reduced. The lightest burden.
Method 3: Cost adjustment method
The cost adjustment method refers to adjusting costs within the allowable range in accordance with relevant tax laws. That is, by rationally adjusting costs or allocating amortization costs to reduce profits, and ultimately avoid tax obligations.
Method 4: Start with sales
Enterprises can choose different sales settlement methods based on their own actual conditions to delay revenue recognition as much as possible. Because of the time value of money, deferring tax payments can often bring certain tax savings to companies.
Method 5: Switch to a “foreign” enterprise
The tax avoidance method of switching to a “foreign” enterprise is mainly considered from the perspective of tax policy. my country implements preferential tax policies for foreign-invested enterprises. If the business model can be changed, such as the transition of domestic-funded enterprises to Sino-foreign joint ventures or cooperative enterprises, they can enjoy corresponding tax policies and finally achieve the purpose of reasonable tax avoidance for enterprises.
Reasonable tax avoidance methods and techniques for small-scale taxpayers
What is the difference between tax avoidance and tax evasion?
1. The laws applicable to the two are different
Tax avoidance shall apply to laws and regulations related to foreign-related economic activities. Tax evasion uses only domestic tax code norms.
2. The objects of the two are different
Tax avoidance is mainly targeted at foreign-invested, wholly-owned, cooperative and other enterprises and individuals. The applicable objects of tax evasion are domestic citizens, legal persons and other organizations.
3. There are differences in the behavior of the two.
Tax avoidance is when taxpayers take advantage of loopholes or imperfections in tax laws and artificially arrange business and financial activities to achieve the goal. Behaviors intended to avoid or reduce tax payments. However, tax evasion refers to the behavior of taxpayers who transfer or conceal their taxable commodities, goods, other properties and income before tax payment is due, and use improper or illegal means to evade their tax obligations.