Some provisions in China's tax laws are not clearly or fully defined, providing exploitable loopholes for corporate tax avoidance. As a key focus of corporate tax planning, the income tax planning employs a wide variety of tax avoidance techniques that are almost omnipresent. This not only undermines the principles of fair tax burdens and equal competition but also affects the nation's fiscal revenue, resulting in significant loss of tax funds. This article discusses the eight commonly exploited tax law loopholes in corporate income tax planning.
Loophole One: Amortization of start-up expenses