Tax Planning And Enterprise Financing

With the establishment and perfection of market economics system, whoever should enhance it's economic benefit, this means that they must reduce the expenditure and costs of their own while making the most profits. As a large one among all the expenditure and costs, the sum of tax seriously affects the true economic benefits of enterprises and individuals. All of this brings out the tax planning.As an important part of financing management, financing is not only a beginning of Enterprise operation, but also the basis of enterprise development, the factors that policy makers consider often are financing costs, financing risk, investing items, profit capacity, capital structure and etc while making decisions in the past time, they seldom consider the effects of tax policy.This dissertation discusses how to apply tax into enterprise financing. It proves in theory that reasonable tax planning helps to realize the goal of value maximization by analyzing the relationship of capital structure and enterprise value.The article divides into five parts totally. Chapter one is an introduction, including the research intention and it's background. The second chapter introduces the basic theory of the tax panning and enterprise financing, which will bring out the following discusses. The third one discusses the necessity and feasibility of tax planning applied in enterprise financing. Chapter four is the core of this dissertation, it discusses the relationship of capital structure and enterprise value with tax being an important factor in them, it proves in theory that tax indeed effects the capital structure, it also tells us that reasonable tax planning helps to realize the goal of value maximization. Chapter five is the tax planning in enterprise financing when there are many tax policies available.