What are the methods of tax planning?

There are several methods for enterprise tax planning: 1. Make use of preferential tax policies for tax planning and choose investment fields and industries. 2. Reasonable use of enterprise organizational forms for tax planning. 3, make full use of the provisions of the tax law and tax documents. Using this method for tax planning requires enterprises to fully understand the national tax policy. 4. Make full use of the financial accounting system and transfer the tax burden. 5. Use the choice of expenditure deduction standard to implement tax planning. Preferential tax policy means that the state encourages the development of certain industries, regions and products and makes special preferential provisions on resource allocation in taxation.

Legal basis:

People's Republic of China (PRC) tax collection management law

Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.

Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the administrative regulations formulated by the State Council.

No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.

Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.

Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.