First, the clever use of provident fund to avoid taxes.

According to the relevant provisions of the Individual Income Tax Law, the monthly housing provident fund paid by working-class individuals is deducted before tax, which means that the housing provident fund paid according to the standard is not taxed.

Two, the use of donation tax credit to achieve tax avoidance.

(1) Regulations on the Implementation of Individual Income Tax in People's Republic of China (PRC)

Individuals who donate their income to social welfare undertakings such as education and areas suffering from serious natural disasters and poverty-stricken areas through social organizations and state organs in China, if the amount does not exceed 30% of the taxable income declared by taxpayers, may deduct it from their taxable income.

Third, the types of tax avoidance products that financial management can choose.

With the development of financial market, new wealth management products are constantly introduced. Many of these wealth management products not only have higher income than savings, but also do not have to pay taxes. For example, investment funds, purchase of government bonds, insurance, education savings and so on.

Four, the use of temporary tax exemption preferential policies, and actively use the time difference given by the state to avoid taxes.

V. Application of preferential tax policies.

Preferential tax policies, commonly known as tax expenditure or tax expenditure, are aimed at supporting the development of certain regions, industries, enterprises and businesses.

Extended data

Reasonable tax avoidance management fee:

Enterprises can increase the proportion of bad debt reserves, and pay management fees for bad debt reserves, thus reducing the profits of the year and paying less income tax.

Enterprises can try to shorten the depreciation period, so that the depreciation amount will increase, the profit will decrease and the income tax will be paid less. In addition, using different depreciation methods, the amount of depreciation accrued is very different, which will eventually affect the income tax.

Employee benefits:

In the process of production and operation, private owners of small and medium-sized enterprises can consider appropriately raising the wages of employees within the scope of taxable wages, handling medical insurance for employees, establishing co-ordination funds such as employee pension fund, unemployment insurance fund and employee education fund, and carrying out enterprise property insurance and transportation insurance.

These expenses can be included in the cost, and at the same time, they can help private owners mobilize the enthusiasm of employees, reduce tax burden, reduce business risks and welfare burden. Enterprises can win good comprehensive benefits at a lower cost.

Sales settlement:

Choose different sales settlement methods and postpone the time to confirm income. Enterprises should postpone the time of revenue recognition as far as possible according to their own actual conditions. Delaying tax payment will bring unexpected tax saving effects to enterprises.

There are many commonly used tax avoidance methods, but they are generally nothing more than: using national tax preferential policies, transfer pricing method, cost calculation method, financing method and leasing method.

Reference source: Baidu Encyclopedia: Reasonable tax avoidance