Flextronics Company Tax Planning Measures Research Under The Tax Reform

Tax planning is a behavior of achieving the goal of maximizing after-tax income by tax decision-making. It is a reasonable arrangement of a company's tax-related activities, which dose not violate state laws and the spirit of the national legislation. Tax planning is the inevitable result and specific performance of increasing tax awareness, which is important part for taxpayer to safeguard the rights. It is encouraged, promoted and protected by national laws. As the British House of Lords, Sir Tomlin said:"Any person has the right to arrange their own businesses, according to the law to do so may reduce the payment. To ensure the benefits from these arrangements are,……can not force him to spend more tax."Flextronics is a Shenzhen company established by Flextronics Group in 1994, whicn is a wholly owned subsidiary and registered capital is 30 million U.S. dollars. It mainly engaged in processing of electronic products and medical equipment. since the establishment, it has been focusing on the tax planning affects on the internal management of enterprises and fund saving function, including income tax and VAT, using SAR and foreign investment incentives, to make the enterprise tax burden down to the most reasonable and legitimate level.With the economic and social development, the relevant regulations of the tax law have not adapted. In 2008, enterprise income tax was reformed and adjusted in our country and the same was transfer tax in 2009.Enterprise income tax rate is determined to 25%, which executes unified pre-tax deducted standard. Trying to establish and perfect the preferential tax system oriented to the national industry. Transfer tax law allows VAT on purchase of the fixed assets to deduct, as well as doing new regulations about exempting from value-added tax on comprehensive utilization of the resources, renewable resources and encouraging energy conservation and emission reduction.Tax reform largely compressed the space of.the enterprise tax planning. Especially the serious influence of the financial crisis, the focal point on planning of the Flextronics Company is how to adjust the policy of it and make the enterprise in the current grim world economy background save corporate tax.Based on the analysis of the Flextronics's business content and tax-related, use of advanced tax planning theories, methods, This article proposed to Flextronics several measures and programs of strengthen the domestic tax planning;combined with practical case studies and models,this article analysis the implementation effect of the main tax planning under new tax law in the Flextronics business,which has obvious significance to Flextronics's tax plan, and hoping to provide some reference to similar companies.