China's Corporate Tax Planning

With the development of Chinese market economy, especially after China joined WTO, tax planning gradually becomes the main tool, for enterprises to lessen their tax, burden and maximize their earning after taxes. However, people tend to misunderstand the definition of tax planning, due to the obstacles of notion and misjudgment about corresponding enterprise behavior. Therefore, it is of great significance to understand the signification of tax planning correctly, to face the risk of tax planning actively and to implement tax planning in Chinese enterprises more efficiently. Because the blemish of research tax planning at present, Clears and definite the target of tax planning, brings up the whole procedure of tax planning, concretely analyzes the tax planning's the technique and method, which can help the enterprises planning tax. Firstly, this article analyzes the development of tax planning theory at home and abroad, explains the theoretical and practical significance of tax planning. It introduces the cause of tax planning. The market economy gives tax planning a good development soil, where the enterprise has the right to decide their production and distribution. In order to realize the finical object, the enterprises do their best to reduce the cost, including tax planning. The government direction in macroscopic also leads to tax planning. According this, it summarizes the basic concepts and illuminates the relationship and definition between tax planning, tax evasion and saving tax, from which it gives the characteristic and objective of tax planning, and emphasizes the macroscopically and microcosmic signification of the tax planning. The third part introduces the principle and the whole process that into practice particularly notice the risk factor in the process, which is divided into the sex risk and the character risk. The enterprise proceeds valid tax planning; it must adopt the different measures according to the...