Tax planning is the process of analysing finances from a tax angle, with an aim to ensure maximum tax efficiency. Careful tax planning is critical for business to succeed in an unpredictable environment. Careful tax planning is critical for business success in an unpredictable global economy. Tax planning is also necessary for individuals who face their own challenges owning, managing and preserving businesses and wealth in a complex regulatory environment. Tax planning can be classified into the following:

• Permissive tax planning: Tax planning which falls under the framework of the law.
• Purposive tax planning: Tax planning with a specific objective.
• Long-range/short-range tax planning: Planning executed at the beginning and towards the end of the fiscal year