Research On Tax Planning Of Small And Medium - Sized Enterprises In China

Along with the continuous development of Chinese market economy, The small and medium enterprises (SMEs) have become an important component of Chinese economic development, and effect the improvement of economic growth employment in cities and towns. However, along with the further opening of the market economy in our country, and due to the recent economic downward pressure increase, enterprise competition is intense, rising costs, financing difficulties have become the factors which restrict the development of SMEs. In this case, SMEs must improve the management level, reduce operating costs to enhance their core competitiveness, Taxation, as one of the important cost, how to implement enterprise through effective tax planning, the purpose of strengthening the cost control, enhance competitiveness become an important topic.The fundamental purpose of tax planning is to make the taxpayer, maximizing after-tax profits due to the complexity of economic activity in the environment in the process of the planning and the understanding of the tax policy factors such as one-sidedness and hysteresis, tax planning risks, many enterprises, especially for small and medium-sized private enterprises to pay taxes according to law is the premise of according to law for don’t know a great deal and maintain their own legitimate interests, can’t distinguish the boundaries of the illegal tax evasion and tax avoidance, ignore the cost of tax planning, one-sided pursuit of tax minimization, thus seriously affect the economic efficiency of enterprises. In this paper, we study the tax planning problem of SMEs, the main content is the necessity of tax planning in our country SMEs as a starting point, according to the characteristics of the current small and medium-sized enterprises, SMEs in our country the main problems existing in the tax planning, for small and medium-sized enterprises in investment, financing and operations how to reasonable use of tax planning method are discussed, from the basic theory of tax planning, tax planning in M company design as an example, the construction of SMEs effective tax planning scheme and Suggestions to improve the present situation of small and medium-sized enterprise tax planning, tax planning for SMEs to provide beneficial reference design.