Companies may take advantage of loopholes in tax treaties between different countries to avoid high taxes. This practice is often referred to as "tax planning" or "base erosion and profit shifting" (BEPS). Here are some common situations and methods: 1. **Double non-taxation**: Companies may take advantage of different tax regulations and agreements between two countries, resulting in the same income not being taxed in both countries. This usually involves differences and inconsistencies in tax treaties. 2. **Income transfer pricing**: Multinational companies may transfer profits from high-tax countries to low-tax countries by manipulating transaction prices between related companies, thereby reducing the overall tax burden. 3. **Tax incentives**: Some countries offer specific tax incentives, such as low tax rates, tax exemptions, etc. Companies can reduce taxes by transferring profits to these countries. 4. **Profit stripping**: Companies can transfer profits to offshore financial centers with lower or no tax rates through complex financial arrangements, thereby reducing taxable income in high-tax countries. 5. **Permanent difference application**: Companies can take advantage of permanent differences between accounting regulations and tax laws, so that some income is not reflected in the tax books or taxation is deferred. 6. **Hybrid Entities and Use of Vehicles**: Companies may take advantage of differences in the systems that treat them as different tax entities in different countries to reduce taxes. However, more and more countries and international organizations (such as the OECD) are working to reduce the use of these tax treaty loopholes through international cooperation and policy coordination. In addition, these strategies may bring legal and reputational risks, so companies need to carefully consider their legality and ethics when conducting tax planning.