Corporate Income Tax Planning Of Saint Honore

The basic obligation of the taxpayer is to pay the tax according to the Tax Law., but this does not mean the taxpayer should pay more tax than the law requires, we can combine the two factors together-this is called tax planning. Tax planning is an economic plan for taxpayers or the agents to reduce the cost of the tax via the colligated usage of tax, accounting, law and financial knowledge without transgressing; at the same time realize the goal to make the maximum value via the use of the plan. The exertion of the Tax planning is consummate and is becoming mature nowadays, but in China Tax Planning has just been put into practice for decades. With many multinational companies pouring into China ,the requirement of Tax Planning is becoming more and more important. Because the income tax of the co-operation has the characteristics of hard to be transferred, heavy and unstable tax and large vacuum for elasticity, so it becomes the major content of the Tax Planning in the co-operation.In this essay: we use Saint Honore , a manufacturing Corp to clarify the importance of tax planning. We utilize technique means and approaches of tax planning ,through its internal and external environment ,we analysis the status of co-operation income tax from 2004 to 2006 detailedly,and point out the existing problems of Tax Planning,at the same time we find out the outlines that we can use them to plan. Thinking about its practical situation and the whole corporation's benefit, then we put forward the tax project to choose the organizing form, and we also forecast the lucre of tax's reducing from 2007 to 2008,this is very significant to the Corp.The theory is testified by the example,so we can bring forward the conclusion:Tax planning is very necessary for every enterprise's exist and grandness, furthermore with the development of our economy and the perfection of the law,there will be a expansive foreground in our country.