Tax Planning Of Production-oriented Enterprises In Importing And Exporting

Taxes for manufacturing enterprises in importing and exporting include duty tax, consumption tax, city construction and maintenance tax and income tax. The purpose of tax planning is to optimize the above tax burdens so that enterprises can obtain as much export refund offset drawback as possible. This article specifically lists all aspects that enterprises need to consider during their strategic planning by studying bonded regulations and their application. The aspects include the actual situation of the enterprise and its related tax preferential policies, what methods enterprises can adopt and potential risks etc.Import tax consists of import customs duty, consumption tax and value-added tax, which all belong to turnover tax. Ideal tax planning for each of the above tax types can be achieved by taking advantage of China's current tax preferential policies through choosing the right investment location and mode of trade. Export tax includes value-added tax and excise refund offset; hence its planning lies in how to fully apply"exemption, substitution and tax refund"policy. With regard to method of calculation, the author considers that denial of exemption or substituting tax amount from"exemption, substitution and tax refund"and denial of exemption or substituting the substituted tax amount from"exemption, substitution and tax refund"not be included in order to somewhat realize zero tax rate for export. If the tax amount from exemption, substitution and tax refund is more than tax refundable and substitution from the domestic sales tax, it should be carried over and included to the next period of tax refund calculation. As far as tax system, the author explores different tax types and points out the shortage of our current tax system and the direction for future reform and development by analyzing China's current tax system compared with the tax system in Europe and the America. It seems to be unavoidable to cancel the VAT policy and combine such two major tax types as consumption tax and income tax into single tax system.According to the author, each tax related to import and export transaction of the manufacturing enterprise has its own characteristics while connected to others. We should consider the whole picture without leaving any tax out. In order to do so, enterprise resources must be thoroughly recognized and well applied. So-called enterprise resources include tax preferential policies that the enterprises have adopted or are entitled as well as the enterprises'own manufacturing characteristics. In fact, the process of tax planning is to help enterprises solve the shortage and waste of theenterprise resources. Since there already exit so many tax planning kinds but are limited in areas they cover, the author opts to make systematic and thorough decision based on the enterprise's own situation in order to optimize its whole tax burdens, which is exactly the target of tax planning. In the mean time, we should consider the dynamic side of the enterprise resources and tax planning as well.All in all, using budget control concept and method, the principle and method of tax planning are fully explained through pre-planning, mid-term control and afterward analysis.