Legal subjectivity: Reasonable tax avoidance refers to the economic behavior of using legal means and methods to reduce taxpayers' tax payments as permitted by law.

The key to this definition is that the taxpayer is within the scope of the tax law.

1. Reasonable tax avoidance of personal income tax 1. Provident fund tax avoidance 2. Insurance tax avoidance 3. Investment funds 4. Education savings The staff of the Chaoyang District Taxation Bureau said: Purchasing provident funds, insurance, funds, education savings and other tax avoidance methods are all legitimate ways.

2. Precautions for reasonable tax avoidance 1. Legality means that tax planning can only be carried out within the scope permitted by law. Violating legal provisions and evading tax business is tax evasion.

The relationship between collection and payment is the basic relationship of taxation, and tax law is the only criterion for handling the relationship between collection and payment.

There is no doubt that taxpayers must pay taxes in accordance with the law, and tax authorities must also collect taxes in accordance with the law.

However, in reality, when enterprises comply with the law, they often have a variety of tax payment plans with varying tax burdens to choose from. Enterprises can reduce tax burdens and increase profits through decision-making options, making tax planning possible.

2. Preparation means prior planning, design, and arrangement.

In real economic life, tax obligations usually have a lag: turnover tax is paid after corporate transactions occur; income tax is paid after profits are realized or distributed; property tax is paid after property is acquired, which provides an objective

Possibility of planning ahead before paying taxes.

In addition, business, investment and financial management activities are multi-faceted, and tax regulations are targeted. Taxpayers and tax targets are different, and tax treatments are often different. This shows taxpayers that they can choose a lower tax burden decision.

.

If business activities have already occurred and the amount of tax payable has been determined, then trying to pay less tax is not tax planning, but tax evasion. 3. It is a purposeful expression of obtaining tax benefits of "tax saving".

This has two meanings: one means choosing a low tax burden.

Low tax burden means low tax cost, which means high capital recovery rate; another meaning is delay in tax payment (different from tax arrears that violate tax laws).

Postponing the tax payment deadline may reduce the tax burden (such as avoiding high marginal tax rates), or it may reduce capital costs (such as reducing interest expenses). No matter which one, the result is tax payment savings, that is, tax savings (Tax Savings).

).

It can be seen from the origin and definition of tax planning that tax planning is not only an important way to maximize corporate profits, but also a way to promote the level of corporate operation and management. It is also an important part of corporate leadership decision-making. This is also the tax planning activity.

This is the fundamental reason for its rapid development and popularity in Western developed countries.

In short, tax planning is to seek the best combination between corporate behavior and government policy intentions in operations. Successful tax planning can often not only minimize the tax burden borne by operators, but also enable the policy intentions in tax regulations imposed by the government to be realized.

accomplish.

Therefore, in a sense, even from the perspective of government macro-control, tax planning activities should be encouraged, or at least not prohibited.

Legal objectivity: The calculation of taxable income in Article 6 of the "Personal Income Tax Law": (1) The comprehensive income of a resident individual shall be based on the income of each tax year minus expenses of RMB 60,000 and special deductions, special additional deductions and legal deductions.

The remaining balance after other determined deductions is the taxable income.

(2) For wages and salaries of non-resident individuals, the taxable income shall be the balance after deducting RMB 5,000 in expenses from the monthly income; income from remuneration for services, author’s remuneration, and royalties shall be calculated based on the amount of each income

is taxable income.

(3) For operating income, the taxable income shall be the balance after deducting costs, expenses and losses from the total income in each tax year.

(4) For income from property leasing, if the income does not exceed 4,000 yuan per time, 800 yuan of expenses will be deducted; if the income exceeds 4,000 yuan, 20% of the expenses will be deducted, and the balance shall be the taxable income.

(5) For income from property transfer, the taxable income shall be the balance of the income from the transfer of property minus the original value of the property and reasonable expenses.

(6) For interest, dividends, bonus income and incidental income, the amount of each income shall be the taxable income.

Income from labor remuneration, author remuneration, and royalties shall be the balance after deducting 20% ??of the expenses.

The amount of income from royalties is calculated at a reduced rate of 70%.

When individuals donate their income to public welfare undertakings such as education, poverty alleviation, and relief for those in need, the portion of the donation that does not exceed 30% of the taxable income declared by the taxpayer can be deducted from the taxable income; the State Council stipulates

If donations to public welfare charities are fully deductible before tax, such provisions shall apply.

The special deductions specified in the first paragraph of paragraph 1 of this article include basic pension insurance, basic medical insurance, unemployment insurance and other social insurance premiums and housing provident funds paid by individual residents in accordance with the scope and standards prescribed by the state; special additional deductions include children’s education

, continuing education, serious illness medical treatment, housing loan interest or housing rent, support for the elderly and other expenditures, the specific scope, standards and implementation steps shall be determined by the State Council and reported to the Standing Committee of the National People's Congress for filing.