Beijing BLN Company Enterprise Income Tax Planning Research

Business income tax is an important tax in China with a wide collection scale and great tax contribution. In recent years, with the deepening reform of economic system in our country, the policy of business income tax shall be adjusted consequently, meanwhile the state has issued a series of preferential policies, which is the lever for adjusting the economy, as well as the red envelopes of policy to enterprises. Beijing BLN Company is a profit-making organization, in order to create more wealth or value, in the process of its development, the company is inevitable to pursuing the maximization of economic benefits. Due to the gratuitousness of tax, paying tax cannot add new interests into enterprise, but resulting in a net outflow of its benefit. Business income tax is one of the important taxes in Beijing BLN Company, and tax amount is increasing every year. For its survival, development and prosperity, it is must be enforced to plan the business income tax in Beijing BLN Company.By analyzing the literature materials and financial statement of Beijing BLN Company, the paper firstly introduces business income tax planning, which is the pre-arrangement for production and operation of enterprise, in order to reduce the amount of business income tax or postpone the tax time without violating state laws and regulations and international practice. The paper explains the characteristics of business income tax planning from the perspective of legitimacy, perspectiveness, value, risk and coordination, describes the legal nature of business income tax and its difference with tax evasion and tax avoidance, clarifies the method of business income tax planning in the view of accounting and tax preference and shows the mode of business income tax with the combination of self-planning and trust-planning. Secondly, the paper presents the income, production cost, period expense and the amount of tax-paid of Beijing BLN Company and analyses its general situation of business income tax. Thirdly, tax department has been established to manage taxation, risk prevent and control and external coordination of tax-related activities. The paper defines the goal of business income planning, which is regulating tax accounting, preventing and controlling taxation risk, and conserving expense. With the cooperation of ZH tax consulting company, the combination of self-planning and trust-planning mode has been determined. Finally, organization system reform policy has been set up, and subsidiaries will enjoy preferential tax policies for small and micro enterprise. At the same time, qualification plan for high and new technology enterprise has also been determined with preferential tax rate of 15%. The paper designs a plan for super deduction of R&D expense and accelerated depreciation of fixed assets, so as to increase operation cost and achieve the goal of enterprise.