Operations you don’t know - using group companies and subsidiaries for tax planning

Operations you don’t know - using group companies and subsidiaries for tax planning, many companies do it on a large scale，Many subsidiaries have been opened，But I still don’t know how to use group companies and subsidiaries for tax planning，Eliminate taxes that do not need to be paid。The issue of tax avoidance of subsidiaries and group companies has also been mentioned before.，of subsidiary

Registration process

，What are the benefits of registering a subsidiary?。Today I will tell you how to use group companies and subsidiaries for tax planning?

What are the methods? Group and subsidiaries,Legally, both are legal entities that can independently bear civil liability.。If it is a branch,A branch is not a legal entity that independently bears civil liability.，All tax burdens of branches are included in the calculation of the parent company (there are also ways to use branches to avoid tax，I may say this later)。

However, if the group and its subsidiaries operate with each other,Can achieve the purpose of paying less corporate income tax,Note that the word "pay less corporate income tax" is used here.,rather than "tax avoidance"(legal tax avoidance)”,Because of the power of law enforcement interpretation,Some operations can easily slip into the frame of "illegal tax avoidance"。1、Related party transactions。

In the past, multinational companies used it more,When my country's corporate income tax rate is higher than that of a multinational company's parent company or subsidiary in another country,The goods or services produced can be sold at a low price,Purchase the required raw materials at high prices、fixed assets、Patent rights royalties、Trademark royalties、Consulting services and other transfer of profits of domestic enterprises,"low price" and "high price"，All are relative to the orderly transaction prices in the open market.。

Later, the State Taxation Administration specially established anti-tax avoidance departments such as "Anti-Tax Avoidance Division 1" and "Anti-Tax Avoidance Division 2" in the International Taxation Department to deal with tax avoidance by multinational companies.,But tax avoidance methods have also evolved into more complex transaction methods.、Pricing techniques, etc.。actually,Related party transactions are also used to transfer profits to the parent and subsidiary companies of domestic companies.、Subsidiary is the same as subsidiary,Similar means。

Part of the profits can be transferred from profitable companies to loss-making companies,Profits from profitable enterprises can also be transferred to some enterprises that enjoy special corporate income tax benefits.。2、transfer business。Selling a part of the business that has been losing money to a company with good profitability,The need to achieve balanced profits。Give an example,Company A operates real estate and hotel businesses,Real estate business is very profitable,Annual profit of 800 million yuan,Hotel business is generally profitable,Annual profit of 200 million yuan。

Company A owns Company B,Company B operates entertainment business,Large scale investment by hand,Profitability over the same period,Huge early losses,Annual loss of 700 million yuan。Then Company A can operate,real estate business assets(Not equity)Sold to Company B,Company B will undertake the real estate business。

so,From now on, Company A will only operate hotel business,Profit of 200 million yuan,Company B operates hotel and entertainment business,Profit of 100 million yuan,Pay less than before

1. 75100 million yuan corporate income tax(7x
2. 25)。
3. transfer cost。Consolidate personnel from loss-making companies under the same group as part-time employees、transfer etc.,Move to a company with good profitability,Get a salary from a profitable company。

In fact, this method is also used for international tax avoidance of personal income tax.,Some multinational companies,most of the time(Residence to avoid personal income tax laws

Require

)work at home,However, salaries are paid at the Asia-Pacific headquarters in Hong Kong,Because Hong Kong’s personal income tax rate is low。

Transfer redundant assets from loss-making companies to profitable companies,This running cost、Depreciation is measured from companies with good profitability,To achieve a balance between the group and its subsidiaries,Overall profit of each subsidiary，The purpose of reducing the overall corporate income tax burden。Saw so much，I believe everyone has a lot of ideas on how to use group companies and subsidiaries for tax planning.，There is a subsidiary here

Registration process

，You can review it again。

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