| Being the foundation of national economy and social development, small and micro businesses form an essential channel of starting business and enriching people in terms of increasing employment, lowering poverty, improving peoples’ livelihood, strengthening social stability, boosting economy and increasing taxation. Meanwhile, small and micro businesses are heavily affected by changes of governmental policies, a good example of which is the transformation from sales tax to value added tax, initiated in 2013, which influenced thousands of millions of small and micro architectural design firms in the Modern Service Sector. In a word, the study and analysis of small and micro architectural design firms’ acts responding to the change of governmental policies are of great importance both in the theoretical and practical aspects.This paper is carried out in the way of case analysis and chooses ZL Architectural Design Company, a small and micro architectural design firm, as the object of case study. In the first section, this paper proposes the question of whether ZL Architectural Design Company’s tax planning is effective after summarizing its corporate action in response to the transformation from sales tax to value added tax. In the second section, this paper analyses the details of tax planning project and makes a conclusion. Starting with introduction of theories and methods of tax planning, this paper summarizes the available space of tax planning for small and micro architectural design firms from the viewpoint of business operations, and then analyses ZL Architectural Design Company’s on-going tax planning project as a result of the transformation from sales tax to value added tax. It is demonstrated in the paper that the on-going project could not function as tax saving, and the value added tax burden is not shifted out of the entirety of ZL Architectural Design Company and the upstream firms which are trapped in the difficulty of choosing proper identity of taxpayer, and ZL Architectural Design Company is now suffering outbreaking managerial problems. Although the on-going project has done something to lower the burden of income tax, the result is unfortunately not good as expected. ZL Architectural Design Company should have further segment the company’s income and shareholders’ income, and perform an income tax-oriented tax planning project via changing upstream firms’ taxpayer identities of income tax, properly arrange office-holding shareholders salary and welfare, increasing more opportunities of fitting the company to tax preference. And then an improved project is proposed based on adjusting the business models between ZL Architectural Design Company and upstream firms, which is then put into calculation and estimation. Simultaneously, with the deeper implementation of the transformation from sales tax to value added tax, the improved project is also able to serve solving the managerial problems and grant ZL Architectural Design Company some opportunities to carry out tax planning on value added. |
