Taxpayers Corporate Income Tax Planning

Tax planning is that taxpayers use professional techniques to plan their production, operation, investment, finance, the structure of organization and the like, by themselves or under the help of taxation professionals, in order to enlarge their value. The premise of tax planning is not to violate the laws and regulations in the taxpayers' country. Since a long period of time, many people often mix tax planning with tax-evading or tax-dodging, they have not a correct, comprehensive and systematical knowledge of tax planning, and ignore its active effect in China. On January 5th, 2000, China Tax established Tax Planning Weekly to develop the exploration of tax-planning theory and operation, and this piece of newspaper has done great contribution on tax-planning extension and application. However, because of the limitation and restriction of many kinds of subjective or objective conditions as traditional ideas, laws and regulations, policies, etc., people do not understand and apply tax planning well, and it need to be improved and utilized more rationally and much further.This paper chiefly covers the concept of tax planning. It explains the conception and characteristics of tax-planning, tells us the history of its development at home and abroad, and compares tax planning with tax-saving, tax-evading, tax-escaping, tax-dodging and tax-refusing, which makes readers recognize tax planning basically. Ant it discusses the feasibility and necessity of tax planning, which tells people why we can and why we must utilize tax planning. It also introduces basic approaches and procedure of the tax planning of corporation income tax, in order to offer a guide for taxpayers. Ant it analyzes the nowadays problems, their causes and try to find the ways to solve these problems. Finally it analyzes and discusses some typical tax-planning cases to direct the taxpayers how to apply tax planning in order to get better financial profits.According to the investigation and analysis of demonstration, this article concludes that tax planning is the inevitable outcome during the improving process of the mechanism of socialist market economy. It accords with the popular international principle of the market economy and surely exists where there is taxation system. Tax planning is the main content of the enterprise management and the natural choice for the promotion of the economic interest and the reduction of cost.