Based On Value Chain Management, Tax Planning Study

With China's entry into WTO, domestic enterprises will be confronted with competition from multinational corporations. Thus, in order to enhance the competitiveness of Chinese enterprises, it is important to make continuous improvement in research and exploration as well as in technology; meanwhile, strategic management of enterprises should also be strengthened to reduce costs and innovate technology. Tax strategy, an important component of strategic cost management, is viewed as an effective means to cut off cost of enterprises reasonably, thus enhancing their competitiveness.The essay is based on the strategies of value chain management. It puts emphasis on the role of tax planning in advance concerning tax-related-to-business value chain, including investment, procurement, production and profit distribution and many other business aspects from the angles of reducing the overall tax burden and maximizing the enterprise value. The essay is divided into five chapters, of which ChapterⅠdescribes the research background, research at home and abroad, the significance of the study and the contents and methods of this paper. By summarizing and analyzing the progress and results of research into domestic and international tax planning, it centers the enterprise's value-added tax and income tax, revolving around its production procedural which leads to formation of its inner value chain and tying to study the enterprise tax planning from the perspective of strategic management and to incorporate the research and application of tax planning into the strategic management of the enterprise. ChapterⅡfirstly presents the basic theory of tax planning and of the value chain respectively, and then, combining strategic management based on the value chain and strategic tax planning, illustrates the strategic concept of tax planning, the characteristics of strategic management and the relationship between strategic management and tax planning. ChapterⅢis the core of this paper, concerning tax planning based on the horizontal value chain. It incorporates enterprise investment, procurement, production, sales and profit distribution on the basis of the internal value chain with China's new relevant legal system. Additionally, it illustrates the tax operation by examining relevant cases. It also emphasizes the integration of advanced business management in order to achieve the maximization of enterprise value for the ultimate goal. ChapterⅣ, An Empirical Study of the strategic tax planning, in view of a company's tax problems and put forward a comprehensive program of tax planning. Chapters V, as the conclusion part, sum up the result of the study and it prospects for further research due to insufficient study on the issue.