Taxation optimization: methods, schemes, kinds and ways

Before the type of taxation optimization selected, comparative analysis must be undertaken for the existing methods of this optimization. First thing in this case is to define the sphere of business activity (stock, antitrust, customs etc.).



Is it worth it to break the law

You should know that this procedure is not welcome by tax authorities but still is not a crime. These ways are fully legal, based on the special characteristics of legislation, and aim to lessen the fiscal pressure.


Optimization tools and criminal tax avoidance are different phemonenas, with their own secrets and peculiarities. Therefore, although tax officers do these tools "no favours", still they are effective at large and medium-scale business companies.


Key points of optimization

Nowadays experts highlight the following general peculiarities for competent taxation management:

  1. Classical method meaning that all actions of VAT payer would be in accordance with existing legislation.
  2. Minimal optimization envolves the taxation optimization on possible occasion.
  3. Intentional "loopholes" forming for taxation and fiscal payments descrease. Otherwise all methods would be illegal and violate the articles of existing tax code.

Types of taxation optimization

Among the basic types of optinization procedures the following are highlighted to apply to taxation:

  1. Income and expences optimization, depending on the sum. Here you can use the sum of income tax to influence on taxation object, but you must consider the trade flows, time and shipment volumes etc.
  2. Intermediary scheme usage. This one is very actual for companies working on sales, service, delivery and direct contracts. This solution is most effective for influence on taxation object while its forming. But it is important to remember in this case that illegal fraud and contracts would lead to tax audition, sanctions and penalties.
  3. Procedure accounting social payments proceeding and salary amount dedacted. Also it works for premial and business trips payments, and any other expences to be classified as dual-use costs.
  4. Company inside a holding is the opportunity to use the company priorities, unified in the group of various taxations form. Competent structioning of few companies taxation scheme allows to lessen the tax burden significantly.

Ways and tools of optimization

The wish of legal decrease of taxation amount is surely understandable! Annually the payments to state budget increase rapidly, that is the cause of profit significant decline.


To solve this problem "financial sharks" created a number of legal methods of taxation optimization:

  1. Specialties of owbership for sold goods change.
  2. Revaluationand decrease of expences on extra items.
  3. Apply the possabilities of regional rate reduction.
  4. Simplified business dividing.
  5. CEO transferring from "sole proprietor" to simplified taxation with object "income".
  6. Transfer the taxation object to the object "incomes - expences".
  7. Merged procedure of simplified taxation with tax of assumed profit.
  8. Disbursement stops if ruble declines with positive rate differences, not to pay the income tax.
  9. While modernization procedure you need to involve all the assets and amortize them.
  10. Creation of legal "buffer" company for preferential taxation.
  11. In critical situation the sum of premial expences must be amortized and the taxation object - to be frozen.
  12. Redistribute the percents inside the holding to deduct the interest on credits and loans.
  13. Buy the property by portions.
  14. Use the agents while property and authorized capital passing.
  15. Control and regulate VAT payments.
  16. Foreigner employees' salary and bonuses are untaxed.
  17. Economy on contributions and compensations at dismissals and staff reduction.
  18. Do not pay out all credits and the receivable (almost all companies have them).
  19. Reduce the working hours and the wage fund.
  20. Subrogate the fleet park to disabled emloyees to reduce the tax.

Tax planning

State tax planning is the complex of methods and tools to ensure standards of funds' indexes' quality and quantity, as determined by law. Actually it is the most effective tax tactics to perform the tax policy and strategy.


As the result of tax planning strategy, state authorities perform a number of financial operations for revenue.



Factors to influence the tax payments

The selection of tax planning complex is never random. The functioning of state authorities is focused on the highest level of constantly growing state and administrative organizations' needs, etc.


Also the following factors can be highlighted among the ones of have influence on tax payments growth:

  • Natural population growth;
  • Rapid technological change;
  • Modernization of state defence capability;
  • Improvement of population's standard of living;
  • Nominal state currency is kept on appropriate level;
  • Specific demands from authorities;
  • National economy and agricultural development;
  • Economics development.

Deferral of VAT taxes.

Deferral of VAT taxes is needed while one of the optimization points is being selected. It allows to keep balance of company tax burden right.


For this purpose one of the effective schemes is chosen:

  1. Unfinished operations in current period. they are left to have the opportunity to delay the pay payment.
  2. Prescribed operations are performed with a following cancel or delay to return the assessment amounts.
  3. Use the agents and intermediaries who can create "tax circustomces" for information, reports. This method involves comissions and agreements.

In this case all solutions' aim is to decrease the minimal risks.


But you need to be careful with it, as there are the details with which tax inspector can reveal easily these schemes:

  • Untimely formalized unfinished operations;
  • The same scheme is used for all periods;
  • Incompetently written reports.

Specific schemes for taxation minimization

Specific schemes are selected and created by experinced financists, depending on particular circustomses, company and other factors.


Still, among the most popular ones are:

  1. Income tax review with help of arbitrarion and main factors analysis. Effective policy of acccount and expences (amortization of income and expences, derivation of license payments fot trade mark, marketing and management). Also consolidated payment of income tax is very effective, along with company accessions and merger.
  2. VAT operationing schemes, law analysis and arbitrarion practice. In this case VAT planning and receivable; arbitrarion for VAT; probably even company splitting or liquidation for whitewash would be very valid. To have nebefit on VAT payment, we recommend the scheme of transfer pricing. Here you should pay attention to the methods of VAT optimization during prepay collected, loaning, pledge or bill. Options are very effective today for VAT optimization.
  3. Tax and law schemes of envelope salary and methods of their legalization. Salary optimization involves civil law agreement, award or provided services act, labour contract.
  4. Optimization of costs on social policy of company. for this purpose the bonus programm is created, extra payments for business trips and business-related errands. also the optimization solutions should effect on insurance, education, transportation and calls cost. Involve financial assistance and gifts from the company.

Is it worth it?

Optimization always considers some risks, but still (if you use no illegal schemes) the operations are actually legal. Do not stop with the only convinient method. Develop your approach and find new solutions. One must admire, it is worth it! Company taxation optimization allows to decrease the amount of payments significantly.


Before you start, define the causes and aims of optimization. It allows you to select the most effective method from all existing ones.


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