A Study Of Enterprise Income Tax Planning Of Shanghai Shuanglu Electric Appliance Co Ltd.

The basic obligation of taxpayers is paying taxes in accordance with the law, and the fundamental right of taxpayers is paying no more taxes than what is stipulated by law of tax.Tax planning is the combination of the basic obligation and the fundamental right.Tax planning is an economic behavior that taxpayers apply the comprehensive knowledge of tax revenue,accounting,law and finance to reduce taxation cost,by themselves or their agents and on the premise of compliance with the law,in order to maximize the enterprise value.It has been a mature economic behavior in western developed countries,while in China tax planning is still on its infancy stage for more than ten years.With the development of economic globalization,it is a desperate urge for enterprises in China to apply tax planning of which the main contents contain the heaviness,the transference difficulty,the great flexibility and the extended planning space of enterprise income tax.Taking the manufacturing enterprise--Shanghai Shuanglu Electric Appliance Co Ltd.for an example,we closely analyze the company's operation condition and payment of enterprise income tax in fiscal year 2008,clarify its tax planning method and points, and predict its profit from tax saving in 2008.The great significance of applying tax planning is further illustrated by the mutual corroboration of theory and practice.