Legal tax avoidance means that on the premise of respecting tax laws and paying taxes in accordance with the law, taxpayers take appropriate measures to avoid tax obligations and reduce tax expenditure. Reasonable tax avoidance is not tax evasion, it is a normal and legal activity; reasonable tax avoidance is not only a matter for the financial department, but also requires cooperation from various departments such as the market and business, starting from contract signing, payment collection and other aspects.
Tax avoidance is the flexible use of different tax rates and different taxation methods stipulated by existing tax laws based on detailed research on laws and taxes under the premise of complying with tax laws and paying taxes in accordance with the law, so that more profits can be created by enterprises. Legally retained by the enterprise. It is like a defense attorney in the court. It protects the legal rights and interests of the parties to the greatest extent within the scope of the law. Tax avoidance is legal and an economic right that enterprises should have.
One point must be emphasized: there is a qualitative difference between tax avoidance and tax evasion, tax evasion, and fraudulent tax laws.
The types of tax avoidance are divided into three forms: domestic tax avoidance, international tax avoidance, and tax burden transfer. We will mainly introduce some tax avoidance methods commonly used in China for SMEs.
From a practical point of view, domestic tax avoidance means that enterprises avoid domestic tax liability through various methods, channels and means. Starting from more realistic conditions, corporate bosses and financial managers need to solve different problems. Here is a brief talk about what CEOs should do?