In practice, there are different tax avoidance methods for different tax payers. One of the basic methods is to use related transactions in the form of transfer pricing, that is, related enterprises obtain more profits for the joint venture. The transfer of products or non-products is carried out at a price higher or lower than the normal market transaction price. In this transfer, the transfer price of the product is based on the wishes of both parties to achieve the purpose of reducing tax. In the case where the tax burdens borne by the related companies A and B are inconsistent, if the tax rate borne by company B is higher than that of company A, the related company B can increase the profits of company A and reduce the profits of company B through some form of contract. Company B's profits minimize the tax burden they jointly bear and the tax burden they each bear. When tax rates are inconsistent among companies, transfer pricing is generally adopted to shift the main profits to companies with lower tax rates to avoid taxes. If we make full use of international tax havens, special economic zones and preferential tax policies, and transfer the operating income of companies in high-tax areas to companies in low-tax areas through transfer pricing methods by lowering sales prices, the tax avoidance effect will be more obvious. At present, multinational companies mainly adopt this method to avoid taxes. For example, many joint venture companies in my country take advantage of Hong Kong's low income tax to set up subsidiaries in Hong Kong, and then sell the goods to the Hong Kong subsidiaries at reduced prices, thereby achieving tax avoidance. Through the transfer pricing method, one is to allocate expenses to areas with higher tax burdens through affiliated enterprises, effectively offsetting profits, thereby narrowing the basis for calculating income tax. The second is to transfer profits to tax havens with lighter tax burdens through affiliated enterprises. As an enterprise with independent accounting, "purchasing raw materials, equipment, talents, and technology at high prices" and "selling products at low prices" will result in reduced book profits or even losses, thereby effectively saving income taxes. In this way, attention should be paid to tax avoidance. The transfer method must be reasonable and legal. Otherwise, the purpose of tax avoidance will not be achieved and tax evasion may occur instead. For example, a leather and plastic products company mainly produces and sells various types of women's sandals. The equipment and raw materials required for the company's production are all provided by Taiwan Company A, and all products produced are sold to Hong Kong Company B (a subsidiary of Company A). In the first year of its establishment, the company's book sales revenue was 460,000 yuan, its sales cost was 1.22 million yuan, and it had a net loss. Through an investigation of the company's operations and losses, it was found that the cost of a pair of women's sandals produced by the company was 23.44 yuan; and the company sold each pair of shoes to Hong Kong Company B at a price equivalent to RMB 8.90 (confirmed (for its affiliated enterprises), resulting in an inversion between sales revenue and sales costs. When an enterprise is unable to provide materials related to its business dealings with its affiliated enterprises, the tax authorities decide to use the method of “cost + expense + reasonable profit” to make adjustments in accordance with the provisions of the tax law. After adjusting the sales revenue according to the company's book costs, other book expenses and the approved profit rate, it is considered that the company has made a profit in the first year and should pay income tax. Whether it is between enterprises or within enterprises, tax avoidance through transfer product pricing is based on the adjustment of profit margins. That is to say, transfer pricing is when the transfer parties allocate the residual value of the products created internally by each other, in order to maximize the control of it in their own hands or the hands of affiliated enterprises, but the means and rationality and legality should be given considerable attention. Other Reasonable Tax Avoidance Methods While avoiding transfer pricing taxes, you can use preferential tax policies to set up a corporate structure suitable for tax avoidance. For example, regarding international tax havens or low-tax zones, special economic zones or business development zones and their preferential tax policies, many companies use the following methods to avoid taxes to reduce their tax burden. First, virtual permanent operating institutions. Many investment and business enterprises take advantage of the preferential policies of special zones or economic development zones to nominally locate their companies in special zones or economic development zones, but their actual business activities are not or not mainly conducted in the zones. In this way, the enterprise's operating income or business income obtained in non-special zones can enjoy tax exemptions and exemptions from special zones or economic development zones, and profits earned outside special zones or economic development zones can be transferred to domestic corporate headquarters to reduce tax payments. The second is that the trust property is fictitious to enable the trustor to act according to his wishes, resulting in the separation of the trust property and the trust property. However, the business location of the trust property is placed under the name of an enterprise in an international low-tax zone, special zone or business development zone, in order to avoid paying taxes. Purpose of Obligation. In addition, tax avoidance can also be achieved by fully studying tax regulations and making reasonable arrangements for the company's operating methods and finances.

For example: 1. When a large transaction is at the intersection of two tax years (i.e., the end of the year and the beginning of the year), according to the accrual accounting principle, the date of the transaction can be appropriately postponed so that it occurs in the next year as much as possible. , thereby deferring the payment of part of the income tax for one year and obtaining profit benefits. If the tax amount of 1 million yuan is deferred for one year, and the annual interest is 10%, the tax can be avoided by about 100,000 yuan. 2. According to the provisions of my country's tax law, if an enterprise suffers annual losses, it can use the income tax of the next year to make up for it. If the income in the next year is insufficient to make up for it, it can be made up year by year, but the longest period shall not exceed 5 years. Some companies can avoid paying corporate income tax by acquiring loss-making companies and transferring corporate profits to the loss-making companies. 3. For foreign-invested enterprises that enjoy the "two-year reduction and three-year exemption", they should try their best to transfer their profits to affiliated enterprises in the early stage of establishment, try to extend the year in which they started to make profits, and make up for it from the sixth or seventh year. Loss. In the next five years after the company reaches its operating life, profits will be transferred to the enterprise to achieve maximum tax avoidance. You can also acquire this type of enterprise to divert profits and avoid taxes. Different tax payers have different tax avoidance methods. Business managers need to study all economic phenomena related to tax collection activities or seek advice from tax experts in order to find ways and means without legal trouble. Company managers should study legal knowledge, take full advantage of tax incentives, master various methods and participate, apply and improve them in practice. Through the adjustment of the enterprise's organizational structure, operating methods, structure and reasonable financial arrangements, we can achieve the purpose of maximum tax avoidance and seek maximum benefits for the enterprise within the legal scope.