A Study On Tax Planning For Pharmaceutical Industry

Tax cost plays an important role in the operating cost of enterprises, and that effective tax planning can help taxpayers to save their tax cost and is helpful to the accomplish of their strategic goal. However, the understanding about tax planning in China's practical field is not mature yet: the goal of tax planning is just for the minimization of tax burden; when make tax planning decision, to take the current problem into account is enough. Tax planning scheme designed in this view would surely be deficient, that it is shortsighted, has a relatively higher tax planning risk and is harmful to the improve of Enterprise Value. In order to change this situation, this paper advocates such an viewpoint about tax planning: taxpayers should carry out tax planning under the direction of corporate strategy management, and take enterprise value maximization based on interests of those concerned as the goal of tax planning.At present, there is a great opportunity for China's pharmaceutical industry, but it is also confronted with some challenges. On the one hand, benefited from the growth of national consumption demand, the arrival of ageing population society and the reform of medical insurance system, China's pharmaceutical market has been in a process of rapid growth, which gives a great support to the development of China's pharmaceutical industry; On the other hand, China's pharmaceutical industry has several demerits: the scale of most enterprises is small, its research and development capabilities is poor and its profitability is deficient in the international market. These all place China's pharmaceutical industry in a disadvantageous position. So, to emphasize new drug research and development, to focus on the Chinese medicine producing field and biological pharmaceutical field and to focus on special drug in chemical pharmaceutical field, are of significance to the long-term development of China's pharmaceutical industry.Guided by the tax planning view advocated in this paper, here constructed a tax planning work flow for pharmaceutical enterprises, so as to help them to optimize their tax planning activities. Finally, take pharmaceutical industry's development strategy, operating characteristic and the current tax environment all in consideration, this paper made a detail analysis to the tax planning of this industry in the framework of invest, financing and operation activities, and expected that this detail analysis could provide as a guidance for pharmaceutical enterprises when they face similar problems.