(1) The concept of tax reduction technology
Tax reduction technology refers to customs planning technology that directly saves taxes by reducing the amount of tax payable by taxpayers under legal and reasonable circumstances. Compared with paying the full amount of taxes, the more taxes are reduced, the more taxes are saved.
Generally speaking, tax reduction is essentially equivalent to fiscal subsidies. Countries also have two types of tax reductions with different purposes:
One type is tax reduction for the purpose of tax care. For example, the tax reduction of enterprises in areas affected by natural disasters and enterprises for disabled people is a kind of tax care and financial compensation for the financial losses caused by various force majeure by the state;
The other type is tax reduction for the purpose of tax incentives. For example, tax reduction for product export enterprises, high-tech enterprises, recycling production enterprises, etc. is a tax incentive and a financial reward for taxpayers to implement national policies. The tax reduction technology of customs planning is mainly the technology of reducing taxes by legally and reasonably using the state’s incentive tax reduction policy.
(2) Characteristics of tax reduction technology
Tax reduction technology has the following characteristics: Tax reduction technology uses the principle of absolute tax saving, directly reducing the absolute amount of tax for taxpayers, and belongs to the absolute tax saving type of customs planning technology. Tax reduction technology is simple and easy to implement, and does not require the use of professional knowledge such as mathematics and statistics for planning. As long as a simple calculation is made, it is possible to roughly know how much tax can be saved. The technology is simple. Tax reduction is also targeted at specific taxpayers, taxable objects and situations, which are not met by every taxpayer in most cases. Therefore, tax reduction technology is also a customs planning technology that cannot be widely used and has a narrow scope of application.
Tax reduction technology has certain risks. The investment and business activities of enterprises that can use tax reduction technology are often considered to have low investment returns and high risks. There are certain risks in engaging in such investment and business activities. For example, enterprises that invest in recycling production of “three wastes” have certain risks, and their investment returns are difficult to predict.
(3) Key points of tax reduction technology
First, try to strive for tax reduction treatment and maximize tax reduction. Under legal and reasonable circumstances, try to obtain tax reduction treatment, strive to obtain tax reduction treatment for as many tax types as possible, and strive to reduce more taxes. Compared with paying taxes, reduced taxes are saved taxes. The more tax types that receive tax reduction treatment, the more taxes are reduced, and the more taxes are saved.
Second, try to maximize the tax reduction period. Under legal and reasonable circumstances, try to maximize the tax reduction period. The longer the tax reduction period, the more taxes are saved. Compared with paying taxes at normal tax rates, reduced taxes are saved taxes, and maximizing the tax reduction period can maximize the tax savings.