Tax planning refers to the legal and compliant use of tax law provisions and tax policies as means to reduce the tax burden on businesses and individuals, achieving legal tax optimization. This article will introduce 18 methods of tax planning to help businesses and individuals lower their tax liabilities under legal conditions.

Method 1: Optimize income and expenditures. Businesses and individuals can adjust the structure of income and expenditures, and reasonably allocate the proportion of investment and consumption to optimize tax liabilities.

Method 2: Transfer assets to family members. By transferring assets to family members, one can avoid paying relatively high personal income tax and asset tax to a certain extent.

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Method 3: Make reasonable use of tax incentives. Businesses and individuals should make precise choices based on the relevant national tax incentive policies to reduce tax burdens.

Method 4: Make reasonable use of tax deductions. Under the premise of making reasonable use of tax deductions, businesses and individuals can minimize tax liabilities.

Method 5: Utilize pre-tax deductions. By making reasonable use of pre-tax deduction items, businesses and individuals can reduce income and costs when calculating personal income tax and corporate income tax, thereby lowering tax liabilities.

Method 6: Utilize dependent deductions. Businesses and individuals can list family members as dependents to obtain dependent deductions.

Method 7: Actively use charitable tax planning. By planning donations and donating materials in a reasonable manner, the goal of reducing tax liabilities can be achieved.

Method 8: Under the premise of tax compliance, utilize indirect transfers. Through indirect transfers, businesses can achieve the goal of reducing tax liabilities through compliant means.Ninth method: Conduct pre-tax financing. Companies can obtain funds before taxes to reduce their tax burden.

Tenth method: Reasonably split business to achieve tax reduction. Companies can split their business to optimize tax and achieve the goal of tax reduction.

Eleventh method: Utilize compensatory tax deductions. Companies can transfer taxes that are not applicable to a certain period to other periods through compensatory deductions.

Twelfth method: Employ China-UK tax avoidance. Under the premise of complying with national regulations, companies can use China-UK tax avoidance to reduce their tax burden.

Thirteenth method: Strengthen self-inspection of tax audits. Companies should conduct self-inspections of tax audits to reduce tax risks while optimizing tax.

Fourteenth method: Properly handle tax disputes. Companies should handle disputes properly to avoid tax issues caused by improper dispute resolution.

Fifteenth method: Maintain a good tax credit rating. Companies should maintain a good credit rating in tax payments to reduce their tax burden.

Sixteenth method: Utilize tax expert consultation. Companies can seek professional tax consultation services for professional assistance in tax planning.

Seventeenth method: Reasonably utilize franchise rights. In the utilization of franchise rights, companies can simplify processes to optimize tax and achieve tax reduction.

Eighteenth method: Utilize institutional rights. Companies should use government policy support to optimize tax and achieve tax reduction through the use of institutional rights. In summary, tax planning is an important way for businesses and individuals to reduce their tax burden, but it must be carried out legally and in compliance with regulations. It is hoped that through the introduction of these 18 tax planning methods, more people can gain some inspiration and assistance according to their actual needs.