SM-based International Taxation Planning

Multinational corporations are confronted with a more complicated and diversified international political, economic and legal environment. Thus, if they want to remain invincible in such an extremely intense international market competition, they must arrange their business in a multi-level and omni-directional way, in order to gain income at the same time to reduce the cost and expense as much as possible, while raising their core competitive ability and keeping the long-term competitive advantage. In all the enterprise's costs and expenses, taxes take up a great proportion. Therefore, how to find out a legitimate way to avoid taxes to pursue the maximum profits has already become the important part of enterprise strategic management. In China, more and more outstanding enterprises have extended themselves and pursued their own development in the whole world. Meanwhile, the study about how to use the multinational tax planning tools to plan and arrange the tax payment items from the perspective of strategic management, which provide our enterprises with instruction in how to operate transnational tax planning effectively and enhance long-term competitive ability, will be meaningful in both theory and practice.This paper begins with the domestic and foreign literature review, analyzes that the existing insufficiencies in some aspects of tax planning in China, and introduces the features and spaces of multinational tax planning. On the other hand, this paper tries to explore the relationship between the enterprise strategy and the tax planning, as well as the innovation and implementation process under the conception of strategic management. From the four processes: investment, financing, daily business, and mergence, the author tries to elaborate on how multinational corporation to carry on the tax planning under the instruction of the strategic management concept, and probe into how to control and manage the risk of tax planning using the risk management principle. In this paper, the author believes that the tax planning is an important component in enterprise strategy management. The enterprises should make an overall evaluation on the tax and non-tax cost, the profits and the risk from the perspective of strategic management, to make and execute tax planning, which helps to accomplish the goal of maximizing the enterprise value, and to serve the construction of strategic competitive advantages of transnational enterprises and the abilities of maintaining long-term profits.The originality of this paper lies in the following aspects: Firstly, the author introduces the strategic management concept into the transnational tax planning, for the first time, and arranges the enterprise tax activities from the perspective of strategic management; Secondly, this paper discusses the tax planning during the process of reconfirming the enterprise boundary, so the tax planning will operate in the entire industry or the product value chain through the horizontal integration and longitudinal integration; Thirdly, the author has constructed a model in risk management process of the transnational tax planning and explored many effective methods of risk management according to the risk agents; Finally, the author analyzes the newly promulgated and implemented income tax law, as well as the related special rules and regulations against taxes avoidance in China. Thus, our Chinese transnational investors can gain some references.