Tax Planning Of HW Company's Business In Russia And Risk Control

As the progress of The Belt and Road,the trade between China and Russia is getting more and more frequently,more Chinese companies choose to "Walk out",to go investing in Russia.Until 2016,the investment from Chinese companies to Russia has reached 14.02 billion USD.From 2014 to 2015,China and Russia signed "Agreement and protocol between the government of the People's Republic of China and the government of the Russian Federation on the avoidance of Double Taxation on income and the prevention of tax evasion",and "Amendments to the protocol"(New Agreement for short below).The New agreement lightened the tax burden for Chinese investors to invest in Russia,amended enormously the dividend,interest,and royalties in withholding tax,which will be beneficial to investment in Russia.The New Agreement has been executed on January 1st,2017,which pushed Chinese companies who want to invest in Russia learn new tax policy,change tax planning,and re-analyze the risk might confront and come up with new control measures to solve it.This paper targeted at the tax related issues in Russia of HW Company,combined theory and practice together.Firstly,it introduces the basic tax system and main tax category,and then through the HW Company in the business of Russia,it brought forward the HW Company in the Russian tax planning methods and effect analysis.Then it analyzed in the new environment,the risk of tax planning it may confront,and finally puts forward the measures to deal with risks,to the following two aspects of the role of HW Company:(1)Correctly handle the direction of tax related issues for the Russian business under the New Agreement for HW company,through the tax planning case,summarized method of HW Company in the Russian tax planning.The HW can effectively use various tax policies,avoid double taxation,reduce the company's overall tax burden,and optimize fund liquidity.(2)Pointed out for HW company the risk and countermeasures that the tax-planning scheme may confront in the new environment,and finally maximize the economic benefit of HW Company.This paper is based on the tax planning and risk control research of HW Company in Russia,but its planning ideas and practical operation have reference for other enterprises who are investing in Russia or are preparing to invest in Russia.