1. The concept of tax credit
Tax credit refers to the deduction of tax credit from tax payable. In terms of the taxation authority, the tax payable of the taxpayer is the credit of the taxation authority, which is expressed on the debit side; the tax paid by the taxpayer is the debt paid by the taxpayer, which is expressed on the credit side. The original meaning of tax credit is the credit tax amount of the taxpayer – the tax paid by the taxpayer. The original meaning of tax credit is that the taxpayer can use his credit tax paid to offset his debit tax payable when settling taxes.
The tax credit involved in the customs planning credit technology mainly utilizes the tax preferential or incentive credits and basic deduction credits formulated by the state to implement policies. Many countries, including my country, have stipulated tax preferential credits, including investment credits, research and development credits, etc.
2. Tax credit technology for customs planning
(1) The concept of credit technology
Credit technology refers to a customs planning technology that increases tax credits and achieves absolute tax savings under legal and reasonable circumstances. The larger the tax credit, the greater the amount of tax payable, the smaller the tax payable, and thus the greater the tax savings.
(2) Characteristics of credit technology
Credit technology uses the principle of absolute tax savings and directly reduces the absolute amount of tax paid by taxpayers. It is an absolute tax savings type customs planning technology. Although some tax credits and deductions are similar, in general, the tax preferential or basic deduction credits stipulated by various countries are generally limited in types and the calculation is not complicated. Therefore, the credit technology is relatively simple. Credits are generally applicable to all taxpayers, not just to certain specific taxpayers. Therefore, the scope of application of credit technology is relatively large. Credits are relatively stable and less risky over a certain period of time. Therefore, the use of credit technology for customs planning is relatively stable.
(3) Key points of tax credit technology
First, maximize tax credit items. Under legal and reasonable conditions, try to obtain more tax credit items. Under the same conditions, the more tax credit items, the more tax items that can be offset; the more tax items that can be offset, the less tax payable, and thus the more tax savings. Maximizing tax credit items can maximize tax savings.
Second, maximize tax credit amounts. Under legal and reasonable conditions, try to maximize the tax credit amounts of each tax credit item. Under the same conditions, the larger the tax credit amount, the larger the tax offset; the larger the tax offset, the smaller the tax payable, and thus the more tax savings.