A Study On Enterprises' Tax-planning In China

The tax planning is that the taxpayers or their agents try to maximize their after-tax profits by the arrangement of their financial activities, while without violation of tax laws. The tax planning on narrow sense only includes tax saving. The tax planning on broad sense not only includes tax saving, but also includes tax avoidance and the shifting of burden. Tax planning has seven traits as below: non-violating the law, planning, objective, globality, comprehensive, universality, specialization. Tax evasion is illegal and doesn't belong to tax planning. Tax saving belongs to tax planning and be encouraged. Although tax avoidance doesn't satisfy the legislation of the nation, it is within the scope of tax planning for non-breaking tax laws. According to different standards, tax planning can be categorized many kinds. The theory of tax planning points out that tax planning is inevitable. There are two preconditions is very important for the development of enterprises' tax planning. One precondition is to acknowledge taxpayers' right, namely to admit taxpayers needn't pay more tax duty than Taxation Law required. This is the most powerful and the most basic right. The other precondition is that national legal system is sound and transparent. In the country dominated by the personal rule, the government will haven't sufficient revenue and tax planning will become unmeaning.In our country, the enterprises' pursuing tax planning is not merely necessary, but feasible. Enterprises' pursuing tax planning in our country is necessary. It can help to maximize their after-tax profits, to lift the level of science decision and management, to strengthen the consciousness of paying taxes in accordance with the law. Enterprises' tax planning also can help to improve legal system and tax law, to drive the tax authority to administer affairs according to law, to develop tax agents and improve the consciousness of paying taxes in the whole society. Enterprises' pursuing tax planning in our country is feasible. The law of our country has confirmed the taxpayer's right. The taxing authority has approved the right of enterprises' tax planning. The success rate of tax planning has been increased for improvements of financial management. The tax agency can offer the specialized service for the enterprises' tax planning. TheInternet also is facility for enterprises' tax planning. The opportunity that the wide application of the e-business makes enterprises' tax planning get new development. In our country, there are different policies between different areas, the phenomena create terms for enterprises' tax planning. It is difference of tax burden between china and other countries to make the condition for enterprises' transnational tax planning. Loopholes and defects that lie in tax law also increase the chance of enterprises' tax planning.The research of the theory is for the application in practice. Tax planning in our country run through each phase of the enterprise, including setting up, fund-raising, investment, running, amalgamation, discreteness, liquidation and transnational business activities. By application of enterprises' tax planning at different stages, the enterprise can obtain the remarkable economic benefits.To some problems that our country face at present, the author of this article gave some suggestion of improving.