# The main ways of international tax planning The following are some common international tax planning methods that use tax agreements to optimize the tax burden within the legal framework： ## Common strategies 1. **Use the tax agreement network**: Choose a country with an extensive tax agreement network as the location of the holding company to reduce withholding tax 2. **Planning of permanent institutions**: Carefully design business activities to avoid forming a "permanent institution" in the sense of tax law in high-tax countries. 3. **Transfer pricing arrangements**: Transaction prices are reasonably set between affiliated companies, but they must comply with the "Fair Trade Principle" 4. **Intellectual property strategy**: Put intellectual property rights in low-tax areas and collect profits through license fees 5. **Optimization of financing structure**: Tax planning through controlling debt-to-capital ratio, interest payment, etc. ## Important Notes It should be emphasized that any tax planning should: -Have a real business purpose and substance -Comply with national tax laws and BEPS (base erosion and profit transfer) action plans -Considering the strengthening of international anti-tax avoidance rules in recent years The best practice is to seek the guidance of a professional tax consultant to ensure that tax arrangements are in compliance and legal.