Research on the Tax Planning of Small and Micro Enterprises Income Tax from the Perspective of Financial Management
With the implementation of the new tax law and the change of ideas and methods, the scientific and rational development of enterprise income tax planning has become a hot issue for the enterprises and tax workers to study and pay attention to. On the basis of a comprehensive introduction of the concept and basic principles of tax planning, this paper analyzes and expounds the main strategies and methods of tax planning for enterprise income tax under the new tax law. 1. Concept of Tax Planning At present, the definition of tax planning is not uniform. It is difficult to find authoritative or comprehensive explanations from textbooks, but their connotations are basically the same. Tax planning refers to the purpose of taxpayers to achieve the purpose of reducing the tax burden and realizing the zero risk of tax. In the scope of the law, the tax planning is made through the planning and arrangement of the operations, investment and financial management in the scope of the law, so as to achieve the purpose of tax saving. Analyzing the above concepts, we can see that tax planning has the following two characteristics: first, it clearly indicates the purpose of tax planning. Tax planning is to achieve two purposes at the same time: lighten the tax burden and achieve zero tax risk. If the enterprise does not reduce the tax burden after carrying out tax planning activities, the tax planning is a failure. However, if the enterprise is reducing the tax burden, the tax risk is greatly improved, and its tax planning activities are not successful; two is the means of tax planning. Tax planning requires the enterprise in the scope of the tax law, through the operation, investment, financial management, organization, transaction and other activities in advance reasonable arrangements. 2. Basic Principles of Tax Planning Tax planning is the tax payer on the basis of fully understanding and mastering the tax policy and regulations. When there are a variety of tax options, the taxpayers deal with the finance and operation with the lowest tax burden. In order to do well in tax planning activities, the following basic principles must be followed: 2.1 Principles of legality Enterprises are required to abide by the laws and regulations of the state when carrying out tax planning. It is embodied in the following aspects: first, tax planning can only be carried out within the scope of tax law; second, tax planning can not violate the state financial and accounting regulations and other economic laws and regulations. In violation of economic laws and regulations, it is not advisable to provide false financial accounting information and information. Third, tax planning must pay close attention to the changes of relevant laws and regulations. Tax planning has strong timeliness, and enterprise tax planning must conform to this change. 2.2 Principle of planning Planning means planning, designing and arranging ahead of schedule. In economic activities, the 2018 2nd International Conference on Social Sciences, Arts and Humanities (SSAH 2018) Copyright (c) (2018) Francis Academic Press, UK 831 duty of tax is usually lagging, and the value added tax is paid after the transaction of the business. After the income is realized or allocated, the income tax is paid. This objectively provides the possibility of planning ahead for tax payment. In addition, there are many aspects of operation, investment and financial management, and the tax regulations are also targeted. The nature of the taxpayer and the tax object is different, and the tax treatment is often different, which provides the taxpayers with the opportunity to choose the lower tax burden. If business activities have occurred, it is not considered tax planning that taxes should be fixed and tax evasion or tax arrears should be made. 2.3 Principle of balance Tax planning should not only be considered in the overall operation, but also the overall interests of the enterprise. Some people think that tax planning is to reduce the tax payment to the lowest point, and the less the tax is, the better. In fact, in real life, the best plan is not necessarily the lightest tax plan. Because everything has two sides, and risks and interests coexist. The reduction of tax burden is not necessarily equal to the increase of total capital gains, but sometimes leads to a decline in overall corporate returns. Tax planning is the best way to design and choose the largest overall income. In this way, it is not difficult to understand why some foreign enterprises in the special economic zones are in violation of the common sense and transfer the profits to the high tax areas abroad by means of transfer pricing. These enterprises are evading foreign exchange control and pursuing the overall income of the group rather than the lightest tax burden. 2.4 Purposeful principle Tax planning is to achieve three purposes at the same time: the first is to reduce the tax burden absolutely. Low tax burden and low tax burden mean low cost and high capital recovery rate, thereby lighten the tax burden and achieve zero tax risk. If the enterprise does not reduce the tax burden after carrying out tax planning activities, the tax planning is a failure. However, if the enterprise is reducing the tax burden, the tax risk is greatly improved, and its tax planning activities can not be successful; two is the relative tax reduction. The relative reduction of tax burden should be linked to the business performance of enterprises. If a company has a considerable increase in sales this year than last year, in this case, the reduction of absolute numbers does not fully reflect the effect of tax planning. Therefore, the tax burden rate is usually used to measure whether the tax burden is relatively reduced. The tax burden rate refers to the macro tax burden rate. It is of practical significance to transform the macro tax burden rate and enable enterprises to analyze the tax burden by using the tax burden rate, and the three is to delay tax payment. Deferring the time of tax payment and obtaining the income of delayed tax will reflect the means of tax planning. Under the long term planned economy, the enterprise generally does not care to delay the tax payment, and thinks that through all the methods, the part of the tax should be postponed to the end of the year by the end of the year, and the effect of tax saving can not be achieved. This is not a correct view, because the tax is legally delayed to the end of the year after the end of the year, the enterprise has obtained the value of the tax as a year of use of funds, in this sense, tax planning has also achieved good results. 3. Main Strategies and Methods of Enterprise Income Tax Planning Under the New Tax Law 3.1 The choice of favorable organizational form under the new tax law The choice of the company system and the partnership. The new tax law stipulates that individual proprietorship enterprises and partnership enterprises do not pay corporate income tax, and only levy personal income tax on their owners' income. The organizational form of modern enterprises generally includes two kinds: corporate system and partnership system (including sole proprietorship) Our country implements the differential tax system for different enterprise organization forms. The business profit of the company system is paid the company tax in the enterprise tax link. The profit after the tax is allocated to the investor in the form of dividend, and