In recent years, we often see celebrities evading taxes and losing their houses. From the initial shock, we become accustomed to it: many celebrities are evading taxes. So why are celebrities such a hot spot for tax evasion?
Tax standard
personal
According to our country’s tax-related laws and regulations, if your personal income exceeds 5,000 per month, you must pay personal income tax.
The amount of tax payable = monthly income - 5,000 (threshold) - special deductions - special additional deductions - other deductions in accordance with the law.
Tax rate table:
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You see, when your personal income exceeds 85,000 per month, compared to people whose monthly salary is less than 8.5, the excess will be taxed at 45%. If your salary is 200,000 per month, then you If you have 115,000, you have to pay 45% tax, which means you have to pay more than 50,000 more taxes. For a star with such a high-income profession, a small star who earns less than 1 million a month will have to pay a tax of almost 500,000, so the idea of how to pay less tax will definitely arise.
Business taxes
Compared with personal income tax, the taxes paid by enterprises are relatively small. I believe you often see some countries issuing some policies to provide some tax benefits to support the development of enterprises.
Businesses generally pay VAT, corporate income tax and VAT surcharge among others.
VAT
1) Self-employed individuals, sole proprietorships, and small-scale taxpayers are subject to a tax rate of 3%; if their quarterly income is less than 90,000.00 yuan, they are temporarily exempted from taxation.
2) General taxpayers are divided into industries, collection methods and taxable goods and services. The tax rates are 0%, 3%, 6%, 10% and 16% respectively. By industry: 10% for construction, 6% for authentication and consulting, 16% for sales and commerce; collection method: simple method applies to levy tax rate of 3%; different taxable goods and services: agricultural products 10%, general goods 16%...
corporate income tax
1) Comprehensive tax rate for small and micro enterprises is 10%
2), general corporate tax rate 25%
3) High-tech enterprises receive a 15% mortgage reduction
VAT surcharge
1) Urban maintenance and construction tax: The applicable tax rate in urban areas is 7%; the applicable tax rate in counties and organized towns is 5%; the applicable tax rate in other areas is 1%
2) Education fee surcharge: levy rate is 3%
3). Local education fee surcharge: 2%
These tax rates are much lower than the 45% personal income tax, not to mention various corporate tax reduction policies. Therefore, many celebrities will choose to open companies to pay less taxes. But even if there is such a way to reasonably pay less tax, many celebrities still choose to evade taxes because celebrities earn too much. Based on an income of 10 million, paying 25% of the general corporate income tax will still cost 2.5 million. of taxes. Even though they earn more than many people and are already rich enough because of the dividends from their careers and industries, these celebrities have an increasing appetite, get lost in money, and want to challenge national laws.