Research On The Tax Planning Of A Certain Multinational Corporation

With the development of economic globalization, China’s overseas investment andtransnational business has made a lot of significant achievements. International taxationenvironment brought a great opportunity for the company’s tax planning. With animportant opportunity of overseas expansion of the certain corporation, tax planning isto become an important part of the corporation’s strategy.Getting the most after-tax income at the lowest cost and risk is the multinationaloperation’s main goal of tax planning. As known to all, holding structure, operatingmode and capital Structure are the focus of the research on the multinationalcorporation’s strategy. Choosing the certain corporation as the example in this paper, wedescribed the status and the possible risks the corporation faced firstly. Then, wediscussed the impact on tax planning for the certain corporation, which was caused bythe new Enterprise Income Tax Law.Based on the above analysis, the article discussed the tax planning issues for thecertain corporation from the following three aspects. Firstly, we compared theimmediate and intermediate holding model from the aspect of tax planning and tried topropose an effectively overseas holding structure. Secondly, we analyzed the impact onthe operation model, which is caused by the transfer pricing planning program. At last,we discussed the impact on the tax, which is caused by the way of capital injection, andtried to propose an effectively overseas financing platform.At last, we analyzed the problems of tax planning faced by a multinationalcorporation, for example, ideological unity within the corporation and other factorsfrom the external of the corporation. By analyzing these factors, the paper fatherlyproposed a risk control mode named the entire process risk control model to avoid therisk of taxation, reduce the tax cost and max the value of the company.