1. The cost of the construction company is not enough to bear the tax burden? How to plan without corporate income tax, dividends of 20%
One construction company said that the cost is insufficient and the tax burden is heavy? How to plan that there is no corporate income tax, and there is no 20% individual tax when dividends are distributed, and the tax saving is as high as 90%?
With the rapid development of the social economy, the construction industry has become the “leader” of the current social economy. The current construction industry is thriving, and the construction industry is developing rapidly. This industry spreads all over the country, especially some public buildings. , With its unique shape and structure to show the unique personality and style of the city, it has become a landmark building of a city, forming the unique charm of the economy and culture of the region. The construction industry has driven the social economy and promoted The employment of migrant workers has also driven the local financial income, and the development of construction has also become a mainstay of China's economic development.
The tax burden of the construction industry is relatively clear to everyone. The company has made a lot of money from the accounts, but problems such as hidden costs, non-ticket expenditures, and high profits have led to heavy tax burdens and high pressure. After the accounts are settled, all the money earned is used to pay taxes! So how can the construction industry save taxes?
Is it difficult to plan for tax savings for engineering companies?
At present, many business owners are worried about the tax burden and try their best to save taxes. The issue of invoices is an unspeakable pain for many companies, especially the lack of costs and input?
The "Golden Three" system has doubled the efficiency of tax collection and management! The Internet has become a gold mine of tax information! In the face of big data, the small actions of enterprises and taxation are clear, so the purchase of invoices is now OK. Nowhere.
What is the correct way to save taxes reasonably?
Reasonable tax-saving model: The current domestic tax preferential policies in Shanghai, Chongqing, Hubei, Jiangsu, Jiangxi and other places are quite mature, and the investment in the park has been stable for a long time. They provide tax support for enterprises in the park according to a certain proportion, and foreign companies can also enjoy , Not subject to geographical restrictions. In addition, the investment in the park adopts the headquarters economy form, no enterprise entities are required to enter the park, and the main company’s existing business methods and business addresses are not changed. Legal persons do not need to be on site. Business registration and tax matters are handled by special persons, which is more convenient and quick for enterprises.
Solution (1) The construction industry can reduce the tax burden by splitting the business structure and diverting the business model. Enterprises can set up branches, subsidiaries or new branches in Chongqing, Shanghai, Hubei, Jiangsu, Jiangxi, Qinghai and other headquarters economic investment zones. The company implements business diversion for the main company, some municipal engineering design and consulting, project planning and design, engineering project management consulting services, bidding agency services, engineering technical consulting, technical services, technology transfer, architectural design, consulting, landscape design, consulting, etc. Can enjoy the approved expropriation policy in the establishment of a sole proprietorship.
Sole proprietorships (small-scale/general taxpayers) can apply for the approved collection. The income of a sole proprietorship enterprise enjoys local tax preferential policies, which is applicable to the 5%-35% excess progressive tax rate, and is levied according to the industry’s taxable income rate. After the individual income tax is levied, small-scale taxpayers 0.5%-2.1% (small-scale taxpayers) 2.1%), 0.5%-3.1% of general taxpayers.
Enterprises can set up sole proprietorships in the headquarter economic investment zone, and set up solo enterprises in technology, architectural design, labor service, consulting, project management, etc., so as to enjoy the approved levy policy and through this tax saving Model, there is no corporate income tax, and there is no 20% individual tax when dividends are distributed, and the tax saving is as high as 90%.
Construction engineering and construction companies can also separate labor services and material procurement, and set up construction engineering teams and material procurement and sales centers in the park. They can also enjoy the approved levy. The sales and procurement department's individual tax is levied 0.25% to 1.75%.
Case analysis:
A Sichuan Construction Group company decided to raise the salary of 10 core executives at the end of 2019, with an estimated annual income of 4.5 to 5 million per person. It now wants to solve the problem of senior executives’ individual tax burden. It is recommended that companies establish a wholly-owned management consulting company for each of these 10 executives, suitable for small-scale taxpayers.
Personal income tax ≈ 1.8 million
Total tax payment: 1.8 million
Through business diversion, a sole proprietorship was established to reduce taxes reasonably:
Value-added tax (tentative 1% value-added tax during 2020): 500/1.01*0.01=49,500
Additional tax: 49,500*5%=0.25 million
Personal income tax: 105,000
Of course, there are other tax policies besides the approved collection, such as limited company policy. This kind of industry is suitable for high value-added industries, and can also be registered in our park. The registration forms are branches, subsidiaries (which can be independently accounted for), new companies or relocation. These forms can enjoy value-added tax and corporate income tax. Support. (Building construction industry companies pay 2% of the value-added tax at the project site and 7% at the registration site)
Solution (2) Preferential tax policies for limited companies:
Value-added tax and corporate income tax are supported by 50%-80% of the local finance, and the tax support cycle is monthly!
Vehicle and vessel tax: 70%-80% of the total tax payment is supported! From now on, limited companies can enter the park for free
Case analysis:
Beijing XX Construction Co., Ltd., according to the corporate settlement data in 2019, the corporate profit is 20 million yuan and the value-added tax is 6 million yuan. I want to spin off the sales business, plan to establish a national sales center, and hope to settle in the park with preferential tax policies to reasonably save taxes.
VAT: 6 million
Corporate income tax: 2000*25%=5 million
Financial incentives: 0
After entering the park, enjoy tax preferential policies. The first-level finance of the park, the value-added tax place is reserved for 50%, and the corporate income tax place is reserved for 40%. On this basis, the enterprise's value-added tax, corporate income tax and personal income tax can enjoy up to 70% of the local government Tax refund fund support.
VAT: 6 million
Corporate income tax: 2000*25%=5 million
In other words, after the enterprise enters the park, the value-added tax can enjoy up to 1.714 million yuan of support, and the corporate income tax can enjoy up to 1.785 million yuan of support, that is: the enterprise that settles in our park can enjoy up to 3.499 million yuan of tax support .