Research On Corporate Income Tax Planning Of SDIC Power Investment In The UK

With the deepening of economic globalization,many Chinese enterprises have chosen to go abroad to expand overseas business,which is of great significance to effectively utilize enterprise resources,improve the internal investment structure and enhance the overall strength of enterprises.However,in recent years,the global epidemic has spread and the economic development of many countries has been forced to slow down.Under this background,Chinese enterprises’ overseas investment encounters corresponding obstacles.Therefore,many multinational companies focus on reducing costs and increasing efficiency.Tax burden is an important part of enterprise cost.If it can’t be effectively controlled and reduced,it will seriously affect the normal operation and development of enterprises.Therefore,in the process of international investment,Chinese enterprises should actively use international tax planning under the legal premise to reduce the tax burden cost of enterprises..In this paper,case analysis and comparative study are used to study the corporate income tax planning of SDIC’s investment in the UK.Firstly,according to the research of domestic and foreign literatures,the research status of international tax planning is analyzed,and related concepts and theories such as international tax planning,tax game and tax synergy effect are introduced,which lays a theoretical foundation for the following research on enterprise income tax planning.Secondly,it introduces the status of SDIC’s investment in the UK,analyzes the current tax burden of SDIC,and points out some problems such as the high proportion of corporate income tax in the total tax payment and the large increase.Thirdly,it puts forward the planning objectives of minimizing corporate tax burden.According to the relevant corporate income tax policies of China and the United Kingdom,it analyzes the corresponding corporate income tax planning strategies at different stages by focusing on the financing,investment,production and operation and profit distribution of SDIC Power in the United Kingdom.Finally,the effect of enterprise income tax planning is analyzed from the perspectives of enterprise tax burden,enterprise tax risk and enterprise tax payment time,so as to verify the effectiveness of the planning,and some safeguard measures are put forward,such as setting up a tax planning management organization,setting up a professional tax planning team and making use of international tax agencies,so as to ensure the more effective implementation of the planning.Through the research,this paper summarizes the planning strategies of each stage,hoping that the research results of this paper can provide some experience for Chinese enterprises to plan corporate income tax for overseas investment.