Research on enterprise tax planning under the new income tax law

Because the economic environment in which enterprises are located is very different, the subjective and objective conditions of tax policy and tax planning are constantly changing. It is required to formulate tax planning scheme according to the actual situation of enterprises and maintain considerable flexibility, so as to adjust project investment at any time with the changes of national tax system, tax law, relevant policies and expected economic activities, re-examine and evaluate tax planning scheme, update planning content in time, and take measures to spread risks and avoid disadvantages.

Keywords: tax planning; Pay taxes according to law; Reasonable tax avoidance; Value maximization

First, the concept and preconditions of tax planning

Tax planning is a comprehensive subject, which means that taxpayers can legally reduce or even exempt themselves or extra tax burden by planning and arranging the financial activities and business activities of enterprises in advance within the scope of tax law, so as to maximize after-tax benefits.

Because tax planning is based on compliance with tax laws, it is legal. The premise of enterprise tax planning is to pay taxes and fulfill obligations according to law. According to the Law of People's Republic of China (PRC) Municipality on Tax Collection and Management, its detailed rules for implementation and the laws and regulations on specific taxes, taxes should be paid in full and on time. Only on this basis can reasonable tax avoidance be carried out, and reasonable tax avoidance can be regarded as the right of enterprises and recognized and protected by law.

Second, the essential characteristics of tax planning

1. Legitimacy of tax planning

Tax planning is carried out under the premise of complying with the tax law and not violating it, which is essentially different from tax avoidance and tax evasion. Tax avoidance is a loophole in the law and a violation of moral norms; Tax evasion is not only a violation of morality, but also a violation of tax law, which is severely punished by the government; Tax planning is within the scope permitted by the tax law, and taxpayers choose the best tax plan after careful study and comparison of the tax law. It is neither illegal nor immoral, and it is guided and encouraged by tax policy.

2. Forward-looking tax planning

Tax planning is a guiding, scientific and predictable management activity, and its purpose is to reduce tax expenditure and maximize its significance. Taxpayers predict the tax burden of various schemes in advance before various business activities occur, and determine the choice and decision of business behavior according to the calculation results. In economic activities, the obligation to pay taxes is usually lagging behind, which objectively provides the possibility for making plans in advance before paying taxes. Tax planning is that taxpayers make arrangements and plans in advance for the way and quantity of business activities such as operation, investment and fund-raising, which is different from tax evasion by taking various measures to pay less taxes after the tax obligation occurs.

3. Timeliness of tax planning

With the development and change of social, political and economic situation, various economic phenomena have become more and more complicated. In order to adapt to the development and change of the economic situation, the tax law that regulates taxpayers' tax payment behavior is constantly being adjusted, changed and improved. This requires that tax planning must be based on reality, accurately grasp the changes of current tax laws, regulations and policies, and timely adjust and update tax planning programs in order to obtain favorable planning opportunities and greater economic benefits.

4. The comprehensiveness of tax planning

Tax planning is a systematic and comprehensive work. When planning a certain tax, we must focus on the overall tax burden of the enterprise, and we must not blindly pursue the lightest tax burden of a certain tax. In this case, after tax planning, although the tax burden of a certain tax has decreased, other taxes may have a heavier burden; The tax burden may be reduced in the early stage, but it will be heavier in the later stage. Therefore, when making tax planning, enterprises should grasp the overall situation and make comprehensive measures to achieve the lightest overall tax burden and the lightest long-term tax burden, so as to prevent the phenomenon of paying attention to one thing and losing another.

5. Professionalism of tax planning

With the economic globalization, international economic and trade exchanges are becoming more and more frequent, the business scale is expanding, and the tax laws of all countries in the world are becoming more and more complicated, so it is becoming more and more difficult for taxpayers to make tax planning alone. In this context, as a professional tax agency and tax consulting agency, it came into being. Accounting firms, law firms, tax agents and tax consulting companies all over the world, especially in developed countries, have started and developed consulting services on tax planning, which shows that tax planning is becoming more and more professional.

Third, the tax planning of enterprises in actual business activities.

1. Tax Planning in Financing Decision-making

The tax factors in financing will not only affect the cash flow of enterprises, but also affect the financing cost, thus bringing different expected returns to enterprises. In the composition of capital structure, using retained earnings and issuing new shares to raise funds, because of the unity of operators and owners, there is the problem of repeated taxation, so the tax burden is the heaviest; Raising funds by borrowing, the interest as the cost can offset the pre-tax profit of the enterprise, thus reducing the income tax, but this way is risky. According to the provisions of the tax law, the funds raised by issuing stocks and self-accumulation of retained profits belong to the owners' rights and interests of enterprises, and paying dividends cannot be charged as enterprise expenses, but can only be distributed in the after-tax profits of enterprises. Funds raised by issuing bonds, bank loans, financial leasing, etc. belong to the liabilities of enterprises. Interest expenses arising from liabilities can be deducted from pre-tax profits. Different financing methods of enterprises will affect the net profit of tax basis, and then affect the tax burden level. Therefore, from the perspective of tax planning, under the premise that the return on investment before interest and tax is greater than the debt cost ratio, the higher the debt ratio and the larger the amount, the more obvious the tax saving effect will be. Enterprises can get more income by increasing the debt ratio, improve the income level of equity capital, thus increasing the asset value of enterprises and maximizing the enterprise value. Of course, the higher the debt ratio, the better With the increase of debt ratio, the financial risk and financing cost of enterprises will increase. When the cost rate of liabilities exceeds the investment return rate before interest and tax, liabilities cannot achieve the purpose of tax saving.