The two key points of tax planning are "according to law" and "planning". Tax planning, that is, within the scope of the tax law, through the operation, investment, financial management activities such as prior planning and arrangements, in order to obtain as much as possible "tax saving" tax benefits, we have the following six methods on the tax planning:

1. Use of tax incentives for tax planning:

One important condition for choosing investment areas and industries to carry out tax planning is to invest in the industry. >Select investment areas and industries to carry out tax planning is an important condition is to invest in different areas and different industries to enjoy different tax incentives. Industrial tax incentives are mainly reflected in the promotion of technological innovation and scientific and technological progress, to encourage the construction of infrastructure, to encourage the development of agriculture and environmental protection and energy saving, etc. Therefore, enterprises can utilize tax incentives to carry out tax planning. Therefore, enterprises use tax incentives to carry out tax planning is mainly reflected in the following aspects:

1) low tax rates and income reduction incentives.

2)Tax incentives for industrial investment.

3)Preferential policies for job placement

4)Preferential policies for tax depressions

2.Reasonable use of the organizational form of the enterprise for tax planning

In some cases, an enterprise can plan its tax payment by making reasonable use of the organizational form of the enterprise. For example, after the consolidation of the enterprise income tax law, following international practice will be the enterprise income tax as a legal person to define the standard of taxpayers, the original domestic enterprise income tax independent accounting standards are no longer applicable, and at the same time provide that does not have the legal personality of the branch should be aggregated to the head office of the unified tax. The use of independent and aggregated taxation for different organizational forms respectively will have an impact on the tax burden of the head office. Enterprises can make use of the new provisions to carry out effective tax planning by choosing the organizational form of branches.

3. The use of depreciation to carry out tax planning

Depreciation is in order to make up for the depletion of fixed assets and transferred to the cost or the period of the cost of that part of the value of the depreciation of the depreciation is directly related to the cost of the enterprise in the current period, the size of the expenses, the height of the profit and the amount of income tax payable. Depreciation has the role of tax deduction, the use of different depreciation methods, the need to pay income tax is not the same. Therefore, enterprises can use depreciation methods to carry out tax planning.

Shortening the depreciation life is conducive to accelerating cost recovery, which can shift the later costs forward, thus making the accounting profit in the previous period to occur later. Under the premise of stable tax rates, the deferred payment of income tax is equivalent to obtaining an interest-free loan. In addition, when the enterprise enjoys the preferential policies of "three exemptions and three halves", extending the depreciation period to arrange the later profits in the preferential period as far as possible, can also carry out tax planning to reduce the corporate tax burden. The most commonly used depreciation methods are straight-line method, workload method, sum-of-the-years method and double-declining-balance method. The depreciation amount calculated by using different depreciation methods is not consistent in volume, and there is also a difference in the cost apportioned to each period, which affects the operating costs and profits of each period. This difference provides a possibility for tax planning.