Tax Saving Strategy Based On The Principle Of Taxable Income

The taxable income of enterprises is the basis of tax assessment for enterprise income tax, so it is also the key to tax saving. According to the regulations and rules, the calculation of taxable income must reflect the following principles: first, the principle of pure income and the cost of inflation.

The regulations stipulate: "the total amount of taxpayers' income in each tax year minus the allowable deduction is the amount of taxable income.

"That is to say, the total cost, expense and loss that will be deducted from the total income of each tax year in the enterprise shall be deducted as the taxable income.

Suppose that the total income of an enterprise in the tax year is 10 million RMB, and the cost, cost and loss are 5 million. The tax amount is 5 million x 33% = 1 million 650 thousand.

If the enterprise increases its cost, expenses and losses legally to 8 million by tax planning, the taxable income will turn to 2 million.

The tax amount is 2 million x 33% = 660 thousand.

The tax rate dropped from 1 million 650 thousand to 660 thousand, and tax saving was nearly 1 million.

The key to saving taxes here is to take legal measures to expand costs, expenses and losses.

Second, the principle of accrual and tax adjustment should be adjusted.

The fiftieth rule of "detailed rules" stipulates: "the calculation of taxpayers' taxable income should be based on the principle of accrual basis.

"This requires enterprises to take account receivable, payable, pending, and withholding on the basis of income and expenses in accounting.

The income and expenses of the current period, whether or not paid or not, are dealt with in the current period.

No income or expense that is not in the current period will be dealt with in the current period if the amount is paid in the current period.

In this way, there are three kinds of tax saving strategies: first, to postpone the accrual of income to the next tax year, especially at the end of the year, so as to postpone the tax payment for a year. If the 1 million payments are postponed for one year, the tax rate will be l0 million in terms of interest alone; two, the cost will be realized ahead of schedule, so that the taxable income will be reduced in advance, especially in the coming year, when the cost is ahead of schedule, and the three is to use accounting to adjust the opportunity to save taxes.

If an enterprise intentionally fails to act according to the principle of accrual basis, the tax department shall have the right to make tax adjustment when calculating the taxable income amount, and the enterprise will achieve the purpose of tax saving when it uses the flexible disposal power of the tax executive personnel to make financial treatment for the enterprise.

Third, the principle of independent enterprise and profit pfer tax saving.

The tenth provision of the Regulations stipulates that "business pactions between taxpayers and associated enterprises shall be charged or paid in accordance with the business pactions between independent enterprises.

The tax authorities shall have the right to make reasonable adjustments if they do not collect or pay the price and expenses in accordance with the business pactions between independent enterprises and reduce their taxable income.

That is to say, taxpayers should set up account books separately as an independent taxpayer entity to show their financial status and calculate taxable income.

In this way, in fact, there will be a lot of profit pfer phenomenon.

By dividing profits, enterprises can turn profits into lighter tax areas through pfer pricing, through cost sharing and a series of practices, and shift costs to areas with heavier tax burden.

Between enterprises, quot is adopted; quot is high and low;

Of course, the ridiculous pfer pricing is pursued by the tax department, and the pfer pricing pursued is actually tax avoidance rather than tax saving.