How to plan for auto parts sales companies: Enterprise income tax is exempt, 45% tax rate is reduced by about 3%
Corporate income tax is one of the major taxes in our country. The tax rate is 25%. It is not a small tax burden for a small and medium-sized company, and it is undoubtedly a large expense for a company with good income.
Here is an explanation of a corporate tax planning case:
Assume that an auto parts sales company in Guangdong has an annual invoice of 10 million, a total cost of 5.5 million, and an annual profit of 4.5 million. What should I do if I cannot obtain invoices for part of the cost of sales and face high taxes?
According to company situation
How to use tax planning to maximize revenue and reduce expenditure for enterprises?
01 Reduce corporate income tax at half of 20%
For companies that qualify as small and low-profit enterprises, corporate income tax can be levied at half of 20%. Compliance with the standards for small and micro enterprises can be distinguished from the following points: ● Industrial enterprise assets do not exceed 30 million yuan, the number of employees does not exceed 100, and the annual taxable income tax does not exceed 500,000 yuan; ● Other corporate assets do not exceed 10 million yuan, The number of employees does not exceed 80, and the annual taxable income tax does not exceed 500,000 yuan.
02 75% of the amount incurred before tax deduction
R&D expenses that do not enter intangible assets, that is, expense R&D expenses, can continue to be deducted based on 75% of the amount incurred before tax;
03The part within 12% of profit can be deducted before tax
For public welfare donations, the portion within 12% of the profit can be deducted before tax, and the excess portion can be deducted for the next three years;
04Reduction of corporate income tax and individual tax
The interest on local government bonds obtained can be exempted from corporate income tax and individual tax
05 successive deductions
For commercial enterprises and service-oriented enterprises that sign labor contracts for more than one year with self-employed retired soldiers and pay social security, a fixed amount will be set within 3 years according to the actual number of recruits, 4,000 yuan per person per year, and successive deductions of value-added tax and urban construction Taxes, education surcharges, local education surcharges and corporate income tax must be reported and filed;
06 Headquarters Economic Policy
1. Preferential tax policies for limited companies:
For registered general taxpayers, it is mainly for enterprise value-added tax planning. Enterprises can set up new companies, branches, subsidiaries or relocate in Hubei, Shanghai, Chongqing, Jiangsu, Jiangxi, Qinghai and other parks, according to the tax territorial principle , The local park will give a certain percentage of financial support subsidies to enterprises that normally pay taxes. From now on, all limited companies entering the park can apply for free, and all fees are free.
VAT is supported by 60%-90% of local fiscal income
Corporate income tax is supported by 40%-95% of local fiscal income
Individual taxes paid by shareholders can enjoy 40%~70% support retained by the local government
Vehicle and vessel tax: 70%-80% of the total tax payment is supported!
2. Individual proprietorship verification policy:
Companies can choose to set up one or more individual proprietorships in the park, such as a studio, a service center, a consulting center, etc., and use business splitting or divestiture to reorganize a certain part of the business and taxation in the park Within the approved collection policy 0.5%-2.1%.
Companies can also choose to register a sole proprietorship in the Shanghai Park to apply for the assessment and collection. We can register a sole proprietorship related to the sales company’s business in the park, and use the XX business department, XX purchasing center, etc. to correspond to the business operations. The tax paid at the place of registration enjoys the low tax rate approved and levied. The same single enterprise needs to achieve fiscal and tax compliance, "three streams in one", and the business is true and reasonable.
The individual tax of the commerce industry is levied 0.25%~1.75% (both small-scale taxpayers & general taxpayers can be approved)
Case analysis:
An auto parts sales company in Guangdong has an annual invoice of 10 million, a total cost of 5.5 million, and an annual profit of 4.5 million. Part of the cost of sales cannot obtain invoices and faces high taxes. We recommend that companies spin off their procurement business and establish sole proprietorships to facilitate procurement management while rationally solving the input.
Value-added tax: 450*13%=585,000
Additional tax: 54*12%=64,800
Corporate income tax: 450*25%=1.125 million
Dividend individual tax: 337.5*20%=675,000
Total tax payment: 2.4498 million
An auto parts sales company in Guangdong established a sole proprietorship in the form of business diversion and enjoys the approved collection policy:
Value-added tax: 450*1%=45 thousand
Additional tax: 4.5*12%=0.54 million
Corporate income tax: 0
Personal income tax: 94,500
Total tax payment: 144,900
Reasonable tax saving of more than 90%