The Study Of Sheng Tang Company's Tax Planning After Enterprise Income Tax Law Merged

Through arrangement of origination, investment, distribution in advanced and adjust them in progress, Tax planning is, on the basis of obey tax laws, to reduce tax burden, tax risk, meanwhile maximize the profit. In the economic globalization today, market competition gets intensified, and legal systems are steadily improved, enterprises function in an ever standardized manner. Enterprises should make tax planning as its strategy so that maximize its value.The new PRC Enterprise Income Tax Law ("EIT law") was approved at the Fifth Session of the Tenth National People's Congress on March 16th. The EIT law will take effect on January 1 st, 2008 and consolidated the enterprise income tax regimes for domestic enterprises and foreign-invested enterprises, ended the system of dual income tax regimes. It is know as EIT law merged.Nan Tong Sheng Tang Chemical Corporation("Shengtang Corporation") pay more attention to tax planning, and make it as one part of its strategic financial management, enjoying preferential policies of low tax rate and periodical tax exemption and reduction such as "2 years' exemption and 3 years' half reduction", "enterprise income tax deduction for enterprises improving China-made equipment" etc under the former tax laws. Enjoy abundant benefit as well as VAT tax rebate with no risk, and got 2.91 million tax deduction, for its useful tax planning during the past five years, the company got lot of fund, and pay little tax lately, meantime maximize its profit, all show the benefit and helpful of tax planning before income tax merger. As the Enterprise Income Tax Law together with its Detailed Implementation Regulations ("DIR") and Guo Shui Fa [2009] No. 2 ("Circular 2") contains the final version of the "Implementation Measures of Special Tax Adjustments (Trial)" ("the Measures") have taken effect. All these will promote the development of economy, of course, tax planning will change together, so, Shengtang company should adjust its strategy according to the laws, know and make full use of all the new rules, actively adjust the philosophy of management and the strategy of financial arrangement, try to found new tax planning, to enjoy large profit with less tax.According to the new problem, as a taxation worker, I was invited to attend the meetings hold by the chairman of Shengtang Corporation, to talk about how could them get new and useful tax planning. For my hard work and further study, I get a set of new tax planning as well as methods for Shengtang Corporation, of course, we got some achievements.