(1) The concept of tax deferral technology
Tax deferral technology refers to a customs planning technology that allows taxpayers to defer tax payments and save taxes relatively under legal and reasonable circumstances. Taxpayers deferring payment of current taxes does not reduce the absolute total amount of taxes paid by taxpayers, but it is equivalent to obtaining an interest-free loan, which can increase the cash flow of taxpayers in the current period, so that taxpayers have more funds to expand working capital and use for capital investment in the current period; if there is inflation and currency depreciation, tax deferral can also be more conducive to the company’s financial benefits.
(2) Characteristics of tax deferral technology
Tax deferral technology uses the principle of relative tax saving. The absolute amount of taxes paid in a certain period does not decrease, but the time value of money is used to save taxes. It belongs to the customs planning technology of relative tax saving. Most tax deferrals involve many regulations and other technologies in various aspects of the financial system, and involve many aspects of financial management. They require certain knowledge of mathematics, statistics and financial management. Various tax deferral and tax saving plans must be compared and decided through relatively complex financial calculations, and the technology is relatively complex. Tax deferral technology is a customs planning technology that can save taxes by taking advantage of tax deferral provisions, accounting policies and methods, and other provisions. It is applicable to almost all taxpayers and has a wide range of applications. Tax deferral mainly utilizes financial principles rather than certain relatively risky and easily changeable policies. Therefore, tax deferral and tax saving technology has relative certainty.
(3) Key points of tax deferral technology
First, maximize the number of tax deferral items. Under legal and reasonable conditions, try to get as many tax deferral items as possible. Under other conditions, including the same total tax amount for a certain period, the more tax deferral items there are, the less tax will be paid in this period, the greater the cash flow will be, and the more tax will be saved relatively. Maximizing tax deferral items can maximize tax savings.
Second, maximize the extension period. Under legal and reasonable conditions, try to get as much tax deferral as possible. Under other conditions, including the same total tax amount for a certain period, the longer the tax deferral period is, the more benefits will be generated by the increased cash flow from tax deferral, and thus the more tax will be saved relatively. Maximizing tax deferral items can maximize tax savings.
Second, maximize the extension period. Under legal and reasonable conditions, try to get as much tax deferral as possible. Under other conditions, including the same total tax amount for a certain period, the longer the tax deferral period is, the more benefits will be generated by the increased cash flow from tax deferral, and thus the more tax will be saved relatively. Maximizing tax deferral period can maximize tax savings.