Individual Income Tax Planning From The Perspective Of The Enterprise

With sustained and stable development of Chinese economy and society, the income of residents grows gradually. And at the same time the constitute of income becomes more and more complicated. The growth of both amount and forms of income brings people’s increasing financing awareness. More and more people pay more attention on the application of tax planning to target the maximizing value. According to the national tax law, enterprises that people work for are required to withhold and pay the income tax for the employees. Therefore, the taxation subject of personal income tax planning is not only a taxpayer himself, his work unit is also an important subject of tax planning.At the point of view of the enterprise, this paper put emphasis on the individual income tax planning of enterprises which in the stage of establishment and operation. Through the analysis of individual income tax planning involved in the enterprise, this article introduces various tax planning methods which enable enterprises to help their employees to reduce the level of overall tax burden. The significance of this paper is to urge enterprises to take active measures to plan individual income tax for employees which is helpful in staff incentives.This paper proposes the theory and the case combined to carry on analyzing and explaining. Normative research is mainly used in the previous section, which includes introducing the theoretical research of China’s personal income tax policy, tax planning and the current legal provisions. Practical case study plays an important role in the second part. The use of a large number of cases, detailed data analysis of various tax-planning program are the main parts of the paper, which help to form operational and systematic individual income tax planning.