Keywords: corporate income tax planning
I. Taxpayer's tax planning
When a parent company sets up a subsidiary, whether to set up a subsidiary or a branch will have an impact on the negative enterprise income tax. Since the subsidiary is an independent legal person, if it is profitable, its profits cannot be merged into the profits of the parent company, and it should be paid as an independent taxpayer. When the local tax rate of subsidiaries is low, subsidiaries can pay less corporate income tax, which makes the overall tax burden of the company lower. However, the branch is not an independent legal person, and can only merge its profits into the parent company to pay enterprise income tax. No matter whether the tax burden is high or low, the overall tax burden of the company cannot be increased or decreased.
Second, the tax basis of tax planning
The tax basis of enterprise income tax is taxable income. Because the accounting method is inconsistent with the tax accounting method, the accounting profit should be adjusted to determine the taxable income. Tax planning should expand the amount of deductible items as much as possible without violating the law.
Influence of Different Capital Structures on Deductions The capital of an enterprise is mainly composed of two parts, one is equity capital, and the other is creditor's rights capital. Because of the different tax policies for equity capital and creditor's rights capital, the enterprise income tax has been affected. If you accept equity investment, according to the regulations, you can only distribute after-tax profits to investors, and you can't deduct tax revenue; If you accept debt investment, some interest expenses can be capitalized and some can be expensed. The interest expenses of the expensed part can be deducted before tax, which directly reduces the tax revenue. The interest expense of the capitalized part can be deducted before tax step by step through depreciation and amortization. Examples are as follows: Company A needs to add 6,543,800 yuan to meet the needs of production and operation. There are two options to choose from. One is to issue an additional 6,543,800 yuan; Option 2: issue bonds of RMB 6,543,800+0,000 with an annual interest rate of 5%. Assume that Company A has a new profit of 500,000 yuan at the end of the year, and distributes profits to investors according to 20% of after-tax profits, with an income tax rate of 33%. The calculation of enterprise income tax payable and profit distribution to investors is as follows:
Scheme 1 income tax payable = 50× 33% = 16.5 (ten thousand yuan)
Profit should be distributed to investors: (50- 16.5)×20%=6.7 (ten thousand yuan)
Option 2 should pay interest to creditors:100×10% =10 (ten thousand yuan).
Income tax payable: (50- 10)×33%= 13.2 (ten thousand yuan)
Through the analysis of this case, the tax burden of absorbing debt capital is lighter than that of absorbing equity capital.
According to the regulations, all kinds of expenses incurred by enterprises in researching and developing new products, new technologies and new processes can be deducted from tax revenue in full. If the technology development expenses increase by more than 65,438+00% over the previous year, the taxable income shall be deducted by 50% of the actual amount, in addition to the full deduction of the development expenses of the current year. If this policy is well used in tax planning, it can not only accelerate the upgrading of enterprises and enhance their competitiveness, but also make more pre-tax deductions and reduce the tax burden of enterprises.
The influence of different lease methods on the deduction; Operating lease and financing lease are two leasing methods that should be considered in tax planning. As a result of operating lease, the rental fee can be deducted directly before tax, while with financial lease, the rental fee is paid in installments and can only be deducted in installments. Therefore, enterprises can choose the operating lease mode with lower tax burden according to their needs.
The influence of repayment method on the amount of deduction There are two repayment methods, one is to pay interest in installments, and the other is to repay the principal once due. Choosing the method of paying interest by installments can deduct interest expenses in advance, which is more beneficial to enterprises.
Influence of Long-term Equity Investment on Deduction There are two accounting methods for long-term equity investment: cost method and equity method. The main difference between the two methods is that the confirmation time of investment income is different. The cost method is to confirm the investment income when the invested enterprise declares to pay dividends or actually receives dividends. Because the time to declare or actually pay dividends is often after the balance sheet date, when the cost method is used for accounting, the recognition time of its investment income is also after the balance sheet date, and the investment income is not included in the tax income of the current year, but incorporated into the tax income of the next year, thus delaying the payment time of income tax. However, the equity method must confirm the investment income according to the investment proportion at the end of the year. As long as the invested enterprise is profitable, even if the realized income has not been distributed to the invested enterprise, the invested enterprise will still confirm the investment income and pay the enterprise income tax this year. Examples are as follows: Company A bought 1 10,000 shares of Company B in 10/0, and the price per share was 2 yuan, accounting for 20% of the total shares of Company B, and the applicable tax rate of Company A was 33%. Company B is located in the special economic zone, and the applicable tax rate is 15%. The accounting statement of Company B on June 5438+February 3, 2000 1 shows that the net profit is1ten thousand yuan. On February 1 day, 2006, Company B announced a profit of 700,000 yuan.
If Company A adopts the cost method for accounting, although Company A realized the investment income on June 5438+February 3, 20001,it does not need to do any accounting treatment or disclose in the accounting statements, and the investment income in 2000 is zero. On February/KOOC-0/day, 2006, Company A confirmed that the investment income was 70× 20% =/KOOC-0/4 (ten thousand yuan). At the end of 200 1 year, income tax shall be paid on this part of investment income14 ÷ (1-15%) × 33% = 5.435 (ten thousand yuan). The income tax payable on long-term investment income will be postponed for one year by using the cost method.
If the equity method is used for accounting, Company A must confirm that the annual investment income is100× 20% = 200 (ten thousand yuan) on February 3, 2000, and disclose it in the accounting statements. At the same time, the enterprise income tax payable due to the increase of investment income in 2000 was 20 ÷ (1-15%) × 33% = 7.765 (ten thousand yuan). On February, 20065438 1 day, when Company B announced the dividend, Company A could only adjust the long-term equity investment account and no longer confirm the investment income.
After the above analysis, we can see that the cost method is more conducive to investment enterprises. When making long-term equity investment decisions, enterprises should prudently make tax planning, determine the investment ratio and choose the accounting method of equity investment according to the needs of business strategy.
The influence of asset evaluation method on deduction; Enterprise accounting system allows different valuation methods for enterprise assets. For example, inventory valuation can adopt FIFO method, LIFO method, weighted average method and so on. When the price rises, the LIFO method can increase the deduction. For another example, fixed assets can be depreciated.
Straight line method, accelerated depreciation method. The accelerated depreciation method can increase the deduction in the previous period and delay the payment of enterprise income tax.
Third, tax planning to make up for losses.
According to the tax law, the losses incurred by the enterprise can be made up by the tax of the next year. If the income tax in the next tax year is insufficient, it can be made up year by year, but the longest time limit for making up for it shall not exceed five years. In tax planning, we can use this policy to make up for the losses. Before the five-year period of pre-tax profits to cover losses expires, we can use the option of asset pricing and amortization allowed by the tax law to make more pre-tax deductions, thus continuing to make losses to enterprises, thus extending the period of this preferential policy. For production-oriented foreign-invested enterprises, losses can be formed at the initial stage of operation, and the profit-making year can be postponed, thus delaying the calculation time of two exemptions and three reductions as much as possible and reducing the tax burden. For example, the profit and loss of a company 199 1-2000 is as follows, and the income tax rate is 33%.
Table 1 unit: 10,000 yuan
Year 9 1 92 93 94 95 96 97 98 99 2000 total
Profit and loss-100-80-60 20 30 30 40 70 80 90120
Income tax 0000003.3 26.4 29.7 59.4
According to the regulations, the losses of the company 19 1, 1992 and 1993 can be made up before tax, but only in 1998, and the profits of 1998 can only be made up. Although 1999 still has 533,000 yuan unpaid (. During the period of 10, the enterprise income tax totaled 594,000 yuan (3.3+80×33%+90×33%). If the company takes legal measures to extend the loss period, see the table below.
Table 2 Unit: ten thousand yuan
Year 9 1 92 93 94 95 96 97 98 99 2000 total
Profit and loss-100-80-40-20 30 30 40 70 80 90120
Income tax 0000000 19.8 29.7 49.5
Comparing the two tables, we can see that the total profit and loss of 10 remains unchanged at 1.2 million yuan, but the loss period is extended to 94 years and the loss recovery period is extended to 99 years. In 1999, the income tax payable by enterprises was (80-20 )× 33% =1980,000 yuan, and in 2000, the income tax payable was = 90 ×.
In the above example, if the company is a production-oriented foreign-invested enterprise and enjoys the treatment of two exemptions and three reductions, the first scheme is to calculate the profit-making year from 1994, 1994, 1995 and 1996, 1997. The total enterprise income tax is (70-60) × 16.5%+(80+90 )× the profit-making year in scheme 2 is calculated from 1995, and 1996 is exempted from enterprise income tax. The total enterprise income tax is (80-20 )×16.5+90× 33% = 330,000 yuan, and the tax burden is reduced by 247,500 yuan compared with the two schemes.
Four, the use of preferential tax policies for tax planning
Choose favorable industries to enjoy tax relief. Because tax policies have different tax preferences for different regions, enterprises can choose low-tax regions to make corresponding investments when investing. For example, foreign investors who invest in production enterprises enjoy tax concessions of two exemptions and three reductions; Investment in energy, transportation and other important projects can enjoy tax concessions of five exemptions and five reductions; Enterprises that invest in advanced technology can also enjoy preferential tax reduction and exemption.
Choose a favorable place of registration to enjoy tax relief. The tax policy varies with the place where the enterprise is registered. Investing in the special economic zones, coastal port cities' economic and technological development zones and Shanghai Pudong New Area can enjoy the income tax rate of 15%; Investment in national high-tech development zones can be exempted from income tax for two years; The establishment of foreign-funded enterprises engaged in service industry in special economic zones enjoys preferential tax treatment of one exemption and two halving; You can also enjoy preferential treatment of income tax reduction and exemption if you invest in the old and poor border areas and western development zones, and so on.
According to the regulations, foreign investors of foreign-invested enterprises directly reinvest their profits, and if the operating period is not less than five years, with the approval of the tax authorities, 40% of the income tax paid on their investment will be refunded. Re-investment in the establishment of advanced technology enterprises or product export enterprises can be fully refunded.
Tax planning is a new thing in China. The author discusses the tax planning in the establishment of enterprises and the tax planning in the production and operation activities of enterprises in related articles. This paper further discusses the tax planning of enterprise income tax. As an important field of enterprise financial management, tax planning still has great planning space and needs further theoretical and practical exploration.
Tax planning of enterprise income tax
Enterprise income tax is a tax levied on the production and operation income and other income of an enterprise after deducting the project amount, which is closely related to the economic interests of the enterprise. Therefore, tax planning must be done well in advance.
The key of enterprise income tax planning is to reduce the taxable income and expand the amount of deductible items as much as possible, so as to reduce the taxable income and finally achieve the purpose of reducing enterprise income tax.
I. Taxpayer's tax planning
When a parent company sets up a subsidiary, whether to set up a subsidiary or a branch will have an impact on the negative enterprise income tax. Since the subsidiary is an independent legal person, if it is profitable, its profits cannot be merged into the profits of the parent company, and it should be paid as an independent taxpayer. When the local tax rate of subsidiaries is low, subsidiaries can pay less corporate income tax, which makes the overall tax burden of the company lower. However, the branch is not an independent legal person, and can only merge its profits into the parent company to pay enterprise income tax. No matter whether the tax burden is high or low, the overall tax burden of the company cannot be increased or decreased.
Second, the tax basis of tax planning
The tax basis of enterprise income tax is taxable income. Because the accounting method is inconsistent with the tax accounting method, the accounting profit should be adjusted to determine the taxable income. Tax planning should expand the amount of deductible items as much as possible without violating the law.
Influence of Different Capital Structures on Deductions The capital of an enterprise is mainly composed of two parts, one is equity capital, and the other is creditor's rights capital. Because of the different tax policies for equity capital and creditor's rights capital, the enterprise income tax has been affected. If you accept equity investment, according to the regulations, you can only distribute after-tax profits to investors, and you can't deduct tax revenue; If you accept debt investment, some interest expenses can be capitalized and some can be expensed. The interest expenses of the expensed part can be deducted before tax, which directly reduces the tax revenue. The interest expense of the capitalized part can be deducted before tax step by step through depreciation and amortization. Examples are as follows: Company A needs to add 6,543,800 yuan to its production and operation. There are two options to choose from. One is to issue an additional 6,543,800 yuan; Option 2: issue bonds of 6,543,800 yuan, with an annual interest rate of 5%. Assume that Company A has a new profit of 500,000 yuan at the end of the year, and distributes profits to investors according to 20% of after-tax profits, with an income tax rate of 33%. The calculation of enterprise income tax payable and profit distribution to investors is as follows:
Scheme 1 income tax payable = 50× 33% = 16.5 (ten thousand yuan)
Profit should be distributed to investors: (50- 16.5)×20%=6.7 (ten thousand yuan)
Option 2 should pay interest to creditors:100×10% =10 (ten thousand yuan).
Income tax payable: (50- 10)×33%= 13.2 (ten thousand yuan)
Through the analysis of this case, the tax burden of absorbing debt capital is lighter than that of absorbing equity capital.
According to the regulations, all kinds of expenses incurred by enterprises in researching and developing new products, new technologies and new processes can be deducted from tax revenue in full. If the technology development expenses increase by more than 65,438+00% over the previous year, the taxable income shall be deducted by 50% of the actual amount, in addition to the full deduction of the development expenses of the current year. If this policy is well used in tax planning, it can not only accelerate the upgrading of enterprises and enhance their competitiveness, but also make more pre-tax deductions and reduce the tax burden of enterprises.
The influence of different lease methods on the deduction; Operating lease and financing lease are two leasing methods that should be considered in tax planning. As a result of operating lease, the rental fee can be deducted directly before tax, while with financial lease, the rental fee is paid in installments and can only be deducted in installments. Therefore, enterprises can choose the operating lease mode with lower tax burden according to their needs.
The influence of repayment method on the amount of deduction There are two repayment methods, one is to pay interest in installments, and the other is to repay the principal once due. Choosing the method of paying interest by installments can deduct interest expenses in advance, which is more beneficial to enterprises.
Influence of Long-term Equity Investment on Deduction There are two accounting methods for long-term equity investment: cost method and equity method. The main difference between the two methods is that the confirmation time of investment income is different. The cost method is to confirm the investment income when the invested enterprise declares to pay dividends or actually receives dividends. Because the time to declare or actually pay dividends is often after the balance sheet date, when the cost method is used for accounting, the recognition time of its investment income is also after the balance sheet date, and the investment income is not included in the tax income of the current year, but incorporated into the tax income of the next year, thus delaying the payment time of income tax. However, the equity method must confirm the investment income according to the investment proportion at the end of the year. As long as the invested enterprise is profitable, even if the realized income has not been distributed to the invested enterprise, the invested enterprise will still confirm the investment income and pay the enterprise income tax this year. Examples are as follows: Company A bought 1 10,000 shares of Company B in 10/0, and the price per share was 2 yuan, accounting for 20% of the total shares of Company B, and the applicable tax rate of Company A was 33%. Company B is located in the special economic zone, and the applicable tax rate is 15%. Company B is 65438+February 3600. On February 1 day, 2006, Company B announced a profit of 700,000 yuan.
If Company A adopts the cost method for accounting, although Company A realized the investment income on June 5438+February 3, 20001,it does not need to do any accounting treatment or disclose in the accounting statements, and the investment income in 2000 is zero. On February/KOOC-0/day, 2006, Company A confirmed that the investment income was 70× 20% =/KOOC-0/4 (ten thousand yuan). At the end of 200 1 year, income tax shall be paid on this part of investment income14 ÷ (1-15%) × 33% = 5.435 (ten thousand yuan). The income tax payable on long-term investment income will be postponed for one year by using the cost method.
If the equity method is used for accounting, Company A must confirm that the annual investment income is100× 20% = 200 (ten thousand yuan) on February 3, 2000, and disclose it in the accounting statements. At the same time, the enterprise income tax payable due to the increase of investment income in 2000 was 20 ÷ (1-15%) × 33% = 7.765 (ten thousand yuan). On February, 20065438 1 day, when Company B announced the dividend, Company A could only adjust the long-term equity investment account and no longer confirm the investment income.
After the above analysis, we can see that the cost method is more conducive to investment enterprises. When making long-term equity investment decisions, enterprises should prudently make tax planning, determine the investment ratio and choose the accounting method of equity investment according to the needs of business strategy.
The influence of asset evaluation method on deduction; Enterprise accounting system allows different valuation methods for enterprise assets. For example, inventory valuation can adopt FIFO method, LIFO method, weighted average method and so on. When the price rises, the LIFO method can increase the deduction. For another example, the depreciation of fixed assets can adopt the straight-line method and accelerated depreciation method. The accelerated depreciation method can increase the deduction in the previous period and delay the payment of enterprise income tax.
Third, tax planning to make up for losses.
According to the tax law, the losses incurred by the enterprise can be made up by the tax of the next year. If the income tax in the next tax year is insufficient, it can be made up year by year, but the longest time limit for making up for it shall not exceed five years. In tax planning, we can use this policy to make up for the losses. Before the five-year period of pre-tax profits to cover losses expires, we can use the option of asset pricing and amortization allowed by the tax law to make more pre-tax deductions, thus continuing to make losses to enterprises, thus extending the period of this preferential policy. For production-oriented foreign-invested enterprises, losses can be formed at the initial stage of operation, and the profit-making year can be postponed, so that the calculation time of two exemptions and three reductions can be delayed as much as possible, thus reducing the tax burden by 59.4.
Four, the use of preferential tax policies for tax planning
Choose favorable industries to enjoy tax relief. Because tax policies have different tax preferences for different regions, enterprises can choose low-tax regions to make corresponding investments when investing. For example, foreign investors who invest in production enterprises enjoy tax concessions of two exemptions and three reductions; Investment in energy, transportation and other important projects can enjoy tax concessions of five exemptions and five reductions; Enterprises that invest in advanced technology can also enjoy preferential tax reduction and exemption.
Choose a favorable place of registration to enjoy tax relief. The tax policy varies with the place where the enterprise is registered. Investing in the special economic zones, coastal port cities' economic and technological development zones and Shanghai Pudong New Area can enjoy the income tax rate of 15%; Investment in national high-tech development zones can be exempted from income tax for two years; The establishment of foreign-funded enterprises engaged in service industry in special economic zones enjoys preferential tax treatment of one exemption and two halving; You can also enjoy preferential treatment of income tax reduction and exemption if you invest in the old and poor border areas and western development zones, and so on.
According to the regulations, foreign investors of foreign-invested enterprises directly reinvest their profits, and if the operating period is not less than five years, with the approval of the tax authorities, 40% of the income tax paid on their investment will be refunded. Re-investment in the establishment of advanced technology enterprises or product export enterprises can be fully refunded.
Tax planning is a new thing in China. The author discusses the tax planning in the establishment of enterprises and the tax planning in the production and operation activities of enterprises in related articles. This paper further discusses the tax planning of enterprise income tax. As an important field of enterprise financial management, tax planning still has great planning space and needs further theoretical and practical exploration.