Tax Planning For Overseas Investment In Enterprises

Under the guidance of the current "go global" strategy and the "One Belt and One Road" strategy,domestic companies are increasingly investing abroad,but domestic companies rarely pay attention to the impact of differences in taxation when investing abroad.Tax planning awareness is generally not high.However,the host country’s tax policy is quite different from China’s taxation system.The taxation problems encountered by companies are more complex than simply operating in China.Tax planning is an important part of financial management during the process of overseas investment activities.Through effective tax planning,companies can achieve the goal of reducing corporate tax burdens and controlling tax risks,helping companies to go abroad smoothly and increase profit levels,to achieve increased shareholders’ equity.This article analyzes the specific status of overseas investments by domestic companies and the risks that may exist when investing overseas and points out the need for domestic companies to carry out tax planning during overseas investment.Based on taxation planning concepts,objectives,principles,and techniques,and relevant taxation policies in Indonesia,tax planning is planned for W automobile companies to invest in Indonesia in order to reduce W automobile company tax burden and control tax risk.Through the establishment of subsidiaries to enjoy Indonesian tax incentives,designing a tax control structure,choosing appropriate financing methods,prevention and control of transfer pricing risk,prevention and control of global information disclosure risks,prevention and control of capital exit risks,etc.,to reduce taxes and control risks for W automobile companies.