For accounting personnel, it is especially important to know how to avoid taxes reasonably in daily work. Reasonable tax avoidance methods generally include price transfer method, cost adjustment method, leasing method, etc.
Price transfer method
It refers to the need for two or more associated enterprises with economic interests to obtain more profits and improve the overall economic interests. Using internal prices to conduct sales activities is the most basic method in reasonable tax avoidance practice.
Tax Border Movement Law
Sovereign countries all have tax jurisdiction, which means that residents and non-residents of the country only tax their income that occurs or originates within the country, or It is based on the source of income and resident income jurisdiction.
Cost adjustment method
There is also a cost adjustment method for reasonable tax avoidance. It is mainly applicable to various types of enterprises and economic entities, and generally includes methods for calculating the cost of issuing or selling inventory, calculating methods for inventory inventory costs, calculating methods for depreciation of fixed assets, and applying methods for technological transformation, etc.
Leasing Law
Leasing involves the lessor and the lessee. For the lessee, long-term ownership of machinery and equipment will increase the burden and risk. Leasing can reduce the burden and risk, and Rent payments can be used to offset corporate profits, reducing the amount of tax payable accordingly; for the lessor, the rental income received can first enjoy more favorable tax treatment than operating profits.
Low-tax area tax avoidance law
As the name suggests, since some areas can enjoy low tax rates, you can choose to register your company in a low-tax area to achieve reasonable tax avoidance. Low-tax areas include countries and regions with lower tax rates and more preferential tax policies. my country's low-tax zones are generally economic and technological development zones, industrial parks, new technology industrial parks, etc. Therefore, many companies have established their companies in areas with more preferential tax policies or changed their company registration locations.