Research On Corporate Income Tax Planning Of JR Lubricating Oil Company

The lubricating oil industry in China is an important manufacturing sector that is closely related to many other industries in the national economy.As small and medium-sized enterprises(SMEs),the main purpose of their operation is to maximize corporate value.JR Lubricants is a SME focusing on producing industrial lubricants.Because corporate income tax accounts for more than 50% of the total corporate tax,reducing corporate tax burden is the primary way to improve the company's market competitiveness and promote rapid development.In this study,by considering the company particular context and the latest tax law,I conduct a tax planning research on the corporate income tax of JR Lubricant Company and propose a tax planning plan for the company.In this study,I first introduce the research background,purpose,and its significant implications,and I also review the current literature on the topic.Then,I review the related theories and common of tax planning,which lays a theoretical foundation for research.Afterwards,I analyze JR's corporate income tax burden and tax management,and compare them with the tax data in the industry.In the next step,I propose multiple tax plans using the data(2016-2018)of JR's primary value chain,including raw material procurement,manufacturing,and sales,before choosing the best plan that may maximize cooperate value.Finally,the chosen plan is tested in an experiment and its effect is discussed.I also estimate the potential problems in the implementation of the plan and offer several solutions.At present,JR Lubricants is still facing the challenge of excessively high tax burden.Therefore,this study may be valuable for the company in its tax planning.