Research On Tax Planning Model

With further perfection of the market economy system and the acceleration of global economic integration, competitions between enterprises are becoming fiercer and tax planning is growing more and more important. In fact, tax planning is to make decisions on plans for tax payment. A tax planning model is a bridge which connects the theory and practice of tax planning. It is also a link between the objective and technology of tax planning. The research on a tax planning model helps improve tax planning efficiency and makes tax planning more accurate. This provides strong support for the management and operation decision making of an enterprise. According to the objectives of tax planning and the principles of taxation, this article establishes a universal model applicable to tax planning after close mathematical argument. Besides, this article deduces the category model applicable to a specific type of cases. These models are practically useful.The objective of tax planning is to maximize after-tax interests by minimizing tax payment. Tax payment minimization and after-tax interest maximization are an organic whole. According to the objective, this article establishes a universal model for tax planning, including an after-tax interest maximization model and a tax payment minimization model. According to the principles of taxation, this article advances the general term formula for calculating the amount of tax to be paid. To minimize tax payment, a taxpayer should reduce tax base, taxable income and tax rate and increase tax deduction, tax credit and tax break as much as possible.The category model for tax planning includes an opportune decision-making model, a taxation forbidden zone model and a Uniform scheduling model. The opportune decision-making model includes a taxation No differential point model and an after-tax interest No differential point model. The taxation forbidden zone model can be applied to the tax planning on the starting point of taxation or critical point of sales amount, deduction, value added rate, and amount of profit. The Uniform scheduling model includes a Uniform scheduling model at a proportional tax rate and that at a progressive tax rate. It can be applied to corporate income tax, personal income tax, consumption tax, tariff and value-added tax.