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The Corporate Income Tax Planning of RG Company

Author: WangYongLe
Tutor: DuNaiTao
School: Henan University
Course: Business Administration
Keywords: corporate income tax tax planning risk
CLC: F275.4
Type: Master's thesis
Year: 2013
Downloads: 4
Quote: 0
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Abstract


With the enterprise supervised by Chinese economy management department increasing year byyear, tax risk has strongly become a bottleneck restricting the healthy development of enterprises. As thekey link of corporate financial management, Tax planning directly related to the economic benefits, usingtax planning to estimate the tax-related matters and choose the most suitable enterprises planning program,inevitably become a major problem of the enterprise financial management. As one of the key tax in ourcountry, Corporate income tax is based on the production and operation income tax base on the net profit ofenterprises production and business activities, besides, the companies pay the tax burden directly, not thetounits and individuals. Corporate income tax is bound up with the net profit after tax, therefore, how tomake tax planning of the corporate income tax has become an important issue of enterprises.RG used to be the China Petrol-Chemical Corporation Equipment Factory, which has beenseparated from China Petrochemical Industry since2004. RG company is the main supplier of oil drilling,oil drilling vehicles and professional equipment, and its products rank high on levels of domestic petroleumequipment. RG company puts a high premium on science and technology innovation, does its utmost toimprove the system of quality management, spares no efforts in nurturing the RG brand in order tomaintain its core advantage in the petroleum equipment industry. RG provides110types of products in10series, including:1000m-4000m truck-mounted drilling rigs,1000m-7000m skid-mounted drillingrigs,1000m-4000m trailer-mounted drilling rigs,25T-225T onshore workover rigs,60T-225T offshoreworkover rigs,4000m-7500m well-logging equipment,50T-70T heavy-duty trailers, top-drive unit,petroleum special vehicles and wellhead tools.By Firmly holding the principle of “Customer First”, RG has established a professional serviceorganization in all the domestic major oilfields to provide all-around after-sales services ranging fromequipment installation, debugging, maintenance, training and spare parts supply. The products of RG are ingreat demand in all the oilfields of China and have been exported to about20countries and regions acrossthe world, such as:The United States of America, Canada, Mexico, Russia, Turkmenistan, Kazakhstan, India, Iraq, Egypt, Sudan, Nigeria and Venezuela. The company has been awarded the " the ten major taxindustrial enterprise " many times by the city hall, and recognized as " A-class enterprise taxation credit "for three consecutive years by the local bureau of taxation and national bureau of taxation together.Based on China’s relevant tax laws and regulations, this thesis use methods of theory andpractice, examine the routine operation activities of RG company, investigate the necessity and feasibilityof RG tax planning, analyze the proof of RG company’s corporate income tax planning through thepreliminary, reasonable, objective planning scheme analysis, design a set of corporate income tax planningfor RG company which include the comprehensive production and management, investment and raisingmoney. It is hoped that this study can provide some hints for the domestic large-scale equipmentmanufacturing enterprise in tax planning.

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CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management > Profit and income distribution
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