Tax Planning For Corporate Public Equity Donations

During the “13th Five-Year Plan” period,with the advent of the Internet +Industry 4.0 era,emerging markets are gradually replacing traditional markets.With the rapid rise of China's Industry 4.0,the introduction of emerging technologies such as smart systems,the Internet of Things,and big data into the manufacturing industry has fundamentally improved the business model of manufacturing customers,thereby triggering far-reaching industrial changes.Therefore,the encouragement of manufacturing enterprises to donate public welfare donations helps to promote the company's products and enhance the company's image while regulating the gap between the rich and the poor.With the development of public welfare donations,a new form of donation has been created: public equity donations.This form of donation has many advanced places compared to traditional forms of donation.In 2016 and 2017,the government also successively promulgated a series of public welfare equity donation preferential policies to encourage enterprises to use public equity donations to donate this form.Although the new public welfare equity donation policy can reduce the income tax on corporate public equity donations,companies can't blindly make donations.Instead,they need to make appropriate tax planning before donation,and public welfare donation related policies.Changes also made it possible for corporate public equity donations to be planned.This article selected the equity donation case of Beijing Dongtu Technology.First compared the corporate income tax paid by Dongtu Technology's public-equity equity donation under the new tax policy and the previous tax policy through a vertical comparison method.The tax law can reduce the taxes that corporate equity donations are required to pay.Then,according to the specific situation of the case,this article carried out tax planning for Dongtu Science and Technology's public-equity donation and estimated the profits of Dongtu Technology in 2017 and 2018 through a combination of linear fitting and exponential fitting and calculated the Dongtu Technology.The critical value of the historical cost of equity donation under the new policy has also summarized the method for determining the critical value of public equity donation for different enterprises.Finally,the article analyzes the risk of planning for public-equity equity donations by manufacturing companies and proposes to appoint professional talents in the planning process for planning risks.When planning,it will combine the economic and tax environment in which the company is located and determine the amount of donations in combination with other donations purpose.At the same time,the article also analyzes other risks in the process of corporate donation and proposes that companies should donate without affecting the normal business operations of the company,without affecting the management rights and control rights of the enterprise and taking the interests of small and medium shareholders into account.