The Tax Planning Of JL Automobile Company’s Core Taxes

For the automotive industry, stimulating domestic demand and promoting economic growth has played a very important role. After China’s accession to WTO, the international auto companies continue to increase investment in our country, making the China’s auto market more competitive. Taxes are huge business costs for a company. Therefore, in order to reduce expenditure and increase the competitiveness, reducing tax expenditures is essential. Therefore, reasonable tax planning can make the car companies to reduce the tax burden and to improve market competitiveness. And JL Automobile Company, Ltd. As one of the leading automobile manufacturing companies in recent years as well as increasing their incomes have been expanding, leading to its growing tax burden, taxes accounted for most of the company’s operating funds. Therefore, in order to achieve its own economic optimization must be reasonable tax planning, to help them have better capital flows. Therefore, this article selects JL Automobile Company, Ltd. as the research object, its corresponding tax planning study.The main contents of this paper consists of four parts. The first part is introduction: Including research background and significance, research ideas and methods as well as innovative and deficiencies. The second part is the basic situation of JL Automobile Company, JL Automobile Company’s financial analysis, taxes payable analysis, and the necessity after analysis tax planning of JL Automobile Company actual operation. The third part is based on the actual situation of JL Automobile Company, mainly from the value added tax, consumption tax, corporate income tax three aspects tax planning. There are three main aspects for VAT tax planning:sales activity tax planning, supplier selection and automotive freight tax planning. Consumption tax is mainly about purchases components and set up sales subsidiaries tax planning. The corporate income tax planning programs, including the depreciation of fixed assets and repair, reduce tax base, revenue recognition time and investment credit. The fourth part is mainly on risk and countermeasure that JL Automobile Company facing in the tax planning. Including JL Automobile Company tax planning’s business risk, operational risk, law enforcement risks, policy risks and recommend measures to avoid risks. Comprising:avoiding the risk of depreciation of fixed assets suggestion; avoiding the risk of sales mode selections suggestion; corporate management need to strengthen the learning of tax laws; focus on country’s macro-policy orientation, take advantage of tax incentives; increase communication with the tax authorities, as well as other recommendations should pay attention to risk aversion.