VF Petrochemical Plant Tax Planning Study

Market economy is a competitive economy. As market entities, in order to gain a foothold in the market competition, enterprises are bound to take all measures to achieve the interests of enterprises to maximize. Tax as a greatly reduced items in enterprises, is a great burden in enterprise production and operation. With the gradual improvement of tax laws, tax planning is taken corporates'more and more attention.As main body of the market economy, Petrochemical companies also face fierce competition in the market. The arrival of the financial crisis, exacerbat the competition of petrochemical enterprises. Although now the economy has entered a period of steady recovery, world economy, there are still great uncertainty and instability. On one hand, in order to cope with the financial crisis, on the other hand, in order to enhance their long-term competitiveness, petrochemical enterprises have stepped up tax cost control. The same as other enterprises, Petrochemical companies will have a taxable item. But the petrochemical enterprises in the taxable items also have their own particularity. First of all, refined oil consumption tax reform, have a huge impact on the petrochemical companies. The increase of the consumption tax is a huge tax burden to the petrochemical companies. Secondly, petrochemical enterprises have large investment in fixed assets, value-added tax reform has also created a far-reaching impact on them. In order to through reasonable tax planning to quickly lower the costs in the short period of time while enhancing long-term competitiveness of enterprises, petrochemical enterprises need to adopt rational use of the state's tax policy to carry out tax planning research.This paper adopted a method of combining theoretical research and empirical research. First, in summing up the status quo on the basis of research at home and abroad, from the theoretical point of view, tax planning concepts, principles and operational principles are described; Secondly, to VF petrochemical plant (hereinafter referred to as V Factory) as an example to introduce the V-factory production business profile, analysis of the V Factory main problems in tax planning, tax planning and V Factory feasibility analysis; Then, with V plant specific business tax-related taxes on petrochemical enterprises, tax planning separately; Finally, about the concrete operation of V Factory tax planning programs, author give safeguards and rationalization proposals about attention issues.