The Research Of Tax Planning For Petrochemical History

With the development of industrialization in China, oil as one of China's important strategic resources, and associated petrochemical industry has becoming a heated industries; at the same time, with the impact of China's economic growth has been much more deep, the oil market in Chinese consumption has been stronger and stonger, and the contradiction of supply and demand has become increasingly sharp. petrochemical industry has been facing great competition in the market, strong pressure on production costs and other aspects. In addition, since the financial crisis broke out in 2008, the international and domestic economic situation has been changed rapidly and the government has adjusted national macroecomic control policies, supply and demand in the petrochemical industry has been appaearing dramatic change. Especially after 2008, 4th quarter, as the global financial crisis spread to the real economy, domestic major petrochemical companies had just got rid of losses in Refinery, agin has began to face kinds of operating pressure, such as sharply decrease in demand of downstream petrochemical products, prices falling, higher costs of prophase raw materials so as to hardly tranfer to downstream,large stock for upstream raw materrials and so on. In addition, since the taxation reform in 1994, China has been setting up a series of standard tax policies which are suitable for petrochemical history. on the base of above, the government has timely adjusted targeted polices twice,and also had introduced some complementary regulations for some serious problems, such as the tax deduction of fixed assets, taxing VAT on productive serive,and income tax deduction of exploratin funds etc, all of which could ease tax burden of petrochemical industry to the extent. However, compared to the tax difficlties for petrochemical industry, the tax burden on the petrochemical industry not only has not decreased but has been increased, especially in the condition of international business strategy and competition, the petrochemical industry in China has been still facing international financial crisis, petrochemical trade protectionism, the international tax environment changes unexpectedly, the exchange rate risk, international investment and financing management and other fiscal difficulties.In this paper, with the method of theortical analisis and empirical study, we study the tax plannning for petrochemical industry. Beginning with taxing environment the petrochemical enterprises faced,we explain the importance of environment factor,such as econmy, taxation, politics,industy feature and so on, so as to illustrate necessity and feasibility of carrying out tax planning in Chinese petrochemical industry.and secondly,this paper argues space and scope of tax planning from two spects of tax categories and special operation petrochemical industry faced. Finally, the paper taking China petrochemical Corporation for an exmple, analyzes the specific planning strategy,making the further illustration of feasibility and economic effectivness of tax planning for chinese petrochemical industry.