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What is corporate tax planning?

What is corporate tax planning?

Corporate Tax Planning: Corporate tax planning is a means of reducing tax liabilities on a registered company. Through the various tax deductions and exemptions provided under the Income Tax Act, a company can substantially reduce its tax burden in a legal way.

What are the techniques of corporate tax planning?

Following are some of the various methods of tax planning:

  • Short-range tax planning. Under this method, tax planning is thought of and executed at the end of the fiscal year.
  • Long-term tax planning.
  • Permissive tax planning.
  • Purposive tax planning.

What are the objectives of corporate tax planning?

The objective behind tax planning is insurance of tax efficiency. Tax planning allows all elements of the financial plan to function in sync to deliver maximum tax efficiency. Tax planning is critical for budgetary efficiency. A reduced tax liability and maximized the ability of retirement plans.

What are the limitations of corporate tax planning?

The one major disadvantage to corporate taxation is that corporate income is subject to corporate taxes, and then income distributions to shareholders in the form of dividends are also taxable for the shareholders. This situation is known as “double taxation.”

What are the tools of tax planning?


  • Tax planning tools for Indian taxpayers. Today, in the year 2016-17, the government has provided various schemes in the budget for taxpayers.
  • Equity Linked Savings Scheme.
  • Life insurance.
  • Public provident fund.
  • Residential housing property.
  • Sukanya Samridhi Account.
  • Children education.
  • Health insurance India.

What is corporate tax planning and management?

TAX PLANNING. Tax Planning is an exercise undertaken to minimize tax liability through the best use of all available exemptions, deductions, rebates and reliefs to reduce income.

What is business tax planning?

Business tax planning is the process that corporations engage in to anticipate, and in many cases minimize, tax liabilities. Nearly every country in the world taxes businesses on a variety of fronts. Profits are almost always subject to taxes, but so are acquisitions, employee benefits and programs, and corporate assets, among other things.

What is the average cost of corporate taxes?

Filing a corporate tax return can often be very expensive. According to the National Society of Accountants , the average cost for the average cost paid to certified public accountants to file a corporate tax return averages is just over $800 per return.

What does tax planning include?

Tax planning is the analysis of finances from a tax perspective, with the purpose of ensuring maximum tax efficiency. Considerations of tax planning include timing of income, size, timing of purchases, and planning for expenditures.

What is about corporate taxes?

Corporate Tax Understanding Corporate Tax. The federal corporate tax rate in the United States is currently a flat 21%, as a result of the Tax Cuts and Jobs Act (TCJA), which President Corporate Tax Deductions. Special Considerations. Advantages of a Corporate Tax.