What is the impact of different organizational forms on corporate tax payment?

The impact of different organizational forms on the tax payment of enterprises is to say the amount, do not understand the different preferential policies of tax exemption, and also have different accounting and inclusion subjects.

The new Enterprise Income Tax Law implements a corporate income tax system, and different organizational forms of enterprises have different results on whether they constitute taxpayers. When a company sets up a branch, the choice between a subsidiary or a branch will have an impact on the corporate income tax burden.

1. Establish a subsidiary.

A subsidiary is an independent legal person and should pay enterprise income tax separately as an independent taxpayer. If the subsidiary makes a profit and the parent company loses money, its profits cannot be incorporated into the parent company, resulting in the result that the profits and losses cannot be offset by the overpayment of enterprise income tax; Vice versa.

Second, the establishment of a branch.

The branch is not an independent legal person, and its profits are incorporated into the parent company to pay enterprise income tax in a consolidated manner, which has the effect of offsetting profits and losses, and can reduce the tax burden of the head office as a whole. Therefore, when setting up a branch, the company should do a good job in the tax planning of income tax and reasonably choose the organizational form of the enterprise.

3. Selection basis.

In addition, Burt Consulting understands that subsidiaries with legal personality can also pay corporate income tax at a reduced rate of 20% under the conditions of "small and low-profit enterprises".

Subsidiaries must account for and declare taxes independently. The branch office is not an independent legal person, so it can not be accounted for independently, and the income tax can be consolidated and paid in the head office.

1. The provisions of enterprise income tax stipulate that subsidiaries shall calculate the tax payable separately, pay the tax at the place of registration, and apply the provisions of monthly (or quarterly) prepayment and year-end final settlement. After the establishment of a branch, the provisions on cross-regional summary payment of enterprise income tax shall be implemented in the collection and management of enterprise income tax. For the relevant enterprise income tax approval and filing matters, the subsidiary shall collect and sort out the information on its own and apply to the local income tax authority.

The branch office shall collect and sort out the information and apply to the competent tax authority for income tax at the place where the head office is located.

2. In terms of the impact of other taxes, according to the provisions of the Provisional Regulations on Value-Added Tax, fixed business households shall declare and pay taxes to the competent tax authorities where their institutions are located; If the head office and branch office are not in the same county (city), they shall declare and pay taxes to the competent taxation authorities of their respective places. Therefore, regardless of whether it is established as a subsidiary or a branch, it is necessary to pay the reputation VAT at the location of the institution.

Other local taxes, such as real estate tax and land use tax, are subject to tax at the location of the asset; Individual income tax should also be paid in the local area of the enterprise's production and operation. Therefore, whether it is established as a subsidiary or a branch, it will basically not affect the local tax of the project location.

Legal basis

Article 50 of the Enterprise Income Tax Law of the People's Republic of China, except as otherwise provided by tax laws and administrative regulations, resident enterprises shall pay taxes at the place where the enterprise is registered; However, if the place of registration is overseas, the place of taxation shall be the place where the actual management agency is located. If a resident enterprise establishes a business establishment within the territory of China that does not have the status of a legal person, it shall calculate and pay the enterprise income tax on a consolidated basis.

Article 22 of the Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT)

1) Fixed business households shall declare and pay taxes to the competent tax travel authority where their institutions are located. If the head office and branch office are not in the same county (city), they shall declare and pay taxes to the competent taxation authorities of their respective places. With the approval of the competent financial and taxation authorities or the financial and taxation authorities authorized by the head office, the head office can summarize and declare the tax payment to the competent tax authority where the head office is located.

In recent years, China has gradually established its status as an economic power, which has benefited from the expansion and strengthening of state-owned enterprises on the one hand, and the vigorous development of the private economy on the other hand. Whether it is a state-owned enterprise or a private enterprise, its development and growth depends not only on the extraordinary development of production and operation, but also on the merger and reorganization between enterprises to achieve the survival of the fittest or the combination of the strong. Next, let's learn about tax planning in corporate restructuring with friends.

Tax policy plays a pivotal role in enterprise reorganization, and the selection and application of tax policy dismantling in enterprise restructuring will be an important topic in the research and reorganization plan of enterprises, and tax-saving tax planning will be the only choice for enterprises. Enterprise restructuring is the process of optimizing the combination of production factors such as personnel, finance, and materials of an enterprise through business reorganization, financial reorganization, and organizational reorganization, and is guided by strategy. China's first enterprise restructuring behavior has been through different forms of guidance and policy support, of which the tax policy is one of the most important and direct means, to meet the requirements of the enterprise restructuring in the tax concessions, such as in the turnover tax reduction, income tax reduction or deferred tax payment, so as to reflect the encouragement and support of enterprise restructuring behavior.

Liangdan Luhao's tax planning can enable enterprises to achieve tax-free restructuring or legal and effective deferrals of tax payable in restructuring, so as to save valuable cash flow. From the perspective of tax policy and tax arrangement selection, the study of tax planning for enterprise restructuring adopts the method of combining theory, regulations and practice, and on the basis of studying enterprise restructuring and tax planning, analyzes the tax policies involved in enterprise restructuring in China, and guides enterprises to use tax policies to combine all aspects of enterprise restructuring activities with tax reduction and tax burden, so as to minimize the tax costs of restructured enterprises and seek maximum economic benefits. At the same time, it tries to provide ideas and methods for tax planning in the process of enterprise restructuring, guide enterprises to update their concepts, closely follow the national tax guidance, and use tax policies reasonably and legally to reduce restructuring costs, so as to maximize the benefits of enterprise restructuring, and ultimately promote the successful restructuring of enterprises and repay the society with extraordinary development speed.

Tax planning should closely follow the changes in tax policies, organically combine tax planning theory and practice, make the tax planning plan a living plan, and revise the planning plan in a timely manner according to the changes in the tax policy, so as to avoid planning being just talk on paper, planning becomes a worrying talk, and it is useless to listen to. The actual situation in real life is more complicated, so we need to analyze it specifically. If you have a complicated situation, we also provide lawyer** consulting services, and you are welcome to provide legal advice.

Taking China as an example, China implements different tax regulations for companies and partnerships. The state levies corporate tax on the company's operating profits, and the after-tax profits are distributed to investors as dividends, and individual investors also need to pay individual income tax once. However, in the case of partnerships, there is no corporate tax on business profits, and only individual income tax is levied on the profits shared by the partners.

Compared with the partnership and the shares, the partnership is better than the shares, because the partnership is only levied once personal income tax, and the shares are subject to another enterprise income tax; If the existence of various factors such as the tax base, tax rate, and preferential policies of the enterprise is comprehensively considered, the shares also have a favorable side, because the country's preferential tax policies are generally only applicable to the shares. For example, Guo Shui Fa (1997) No. 198 stipulates that in joint-stock enterprises, individual shareholders are not subject to individual income tax on the income obtained by individual shareholders from capital reserves, which cannot be enjoyed by partnership enterprises; Secondly, when calculating the overall after-tax interests of enterprises of the two natures, we can not only look at the nominal tax rate, but also look at the overall tax rate. If there are both domestic and foreign residents among the partners, there is a cross-border taxation phenomenon of partnerships, and the tax will vary depending on the nationality.

Under normal circumstances, large-scale enterprises should choose shares, and small-scale enterprises should adopt partnerships. Because, large-scale enterprises need more funds, it is difficult to raise funds, and the management is more complicated, such as the use of partnership form to operate more difficult.

Yes, as follows.

1. Sole proprietorship, it is founded by a certain person, there is a lot of freedom, as long as it is not illegal, how to run how to operate, how many people to hire, how much to borrow, all up to the owner to decide. Earn money, pay taxes, and obey the distribution of the owner; The loss of capital and debts are all covered by the owner's assets. Many of the country's self-employed and private enterprises belong to this category.

2. A partnership is an enterprise founded by several people, dozens of people, or even hundreds of people who join forces to jointly fund and establish enterprises. It is different from a corporate enterprise with separation of ownership and management. It is usually organized by the partners according to contracts or agreements, and the structure is unstable.

The partners are jointly and severally liable for the debts owed by the partnership as a whole. A partnership is not as free as a sole proprietorship, and decisions are usually made collectively by the partners, but it has a certain scale advantage.

3. The ownership and management rights of the company are separated, and the investor bears limited liability to the company according to the amount of capital contribution. It mainly includes limited liability companies and shares.

As far as China is concerned, there are eight main forms of enterprise organization: 1Limited Liability Company, 2

Shares****, 3Wholly state-owned company, 4Sole proprietorship, 5

Partnership, 6Individually-owned businesses, 7Foreign-invested enterprises, 8

Enterprises owned by the whole people and enterprises owned by collectives.

1. Tax planning for subsidiaries and branches.

Article 2 of the new Enterprise Income Tax Law stipulates that "the term "resident enterprise" in this Law refers to an enterprise established in China in accordance with the law, or established in accordance with the laws of a foreign country (region) but with an actual management institution in China". At the same time, the first paragraph of Article 50 stipulates that "the place of registration of the enterprise shall be the place of taxation of resident enterprises; However, if the place of registration is overseas, the place of taxation shall be the place where the actual management agency is located. The second paragraph stipulates that "if a resident enterprise establishes a business establishment without legal person status in China, it shall calculate and pay enterprise income tax on a consolidated basis."

According to this provision, the subsidiary, as a legal entity, becomes a resident enterprise under the new enterprise income tax law. It should be registered as the place of taxation: since the branch cannot become a legal entity, it cannot become a resident enterprise under the new enterprise income tax law, and can only be included in the scope of the head office for consolidated taxation.

Due to the different provisions of the new corporate income tax law for subsidiaries and branches, tax planning can arise from this.

2. Tax planning for small and low-profit enterprises.

Paragraph 1 of Article 28 of the new Enterprise Income Tax Law stipulates that "qualified small and low-profit enterprises. Reduced mortgage: 20% corporate income tax.

Article 92 of the Implementing Regulations stipulates that "the term "qualified small and low-profit enterprises" as mentioned in the first paragraph of Article 28 of the Enterprise Income Tax Law refers to industries that are not restricted or prohibited by the state. And meet the following conditions of the enterprise:

1) For industrial enterprises, the annual taxable income shall not exceed 300,000 yuan, the number of employees shall not exceed 100, and the total assets shall not exceed 30 million yuan;

2) For other enterprises, the annual taxable income shall not exceed 300,000 yuan, the number of employees shall not exceed 8o, and the total assets shall not exceed 10 million yuan. Among them, the "number of employees" is calculated according to the average number of employees of the enterprise throughout the year, and the "total assets" are calculated according to the average total assets of the enterprise at the beginning of the year and the end of the year. On the other hand.

Small and low-profit enterprises refer to enterprises that bear the liability of China's enterprise income tax on the income generated by all production and business activities.

Category A: Audit Collection. Category B:

Approved collection. 0 declaration also needs to fill out a declaration form. The 0 declaration here means that the income tax payable is 0

If you don't have sales revenue, management expenses, or operating expenses, then the tax will have to check whether your company is in operation. If the profit is negative, the income tax is 0The so-called audit collection means that enterprises that apply financial accounting standards should find the applicable tax rate according to the profit after income minus costs and expenses, and calculate and pay enterprise income tax.

Approved collection is applicable to enterprises that can correctly account for income but cannot correctly calculate costs and expenses. The key to whether an enterprise is suitable for audit collection or verification collection is to see which of the enterprise's profit rate and the approved taxable income rate is higher, if the profit rate is high, the implementation of the verification and collection will pay less tax, otherwise it will pay more tax.

After the individual income tax reform in 2018, the corresponding bracket of the highest tax rate of the business income tax rate table was increased from the original 100,000 yuan to 500,000 yuan, and its actual tax burden level was basically the same as the tax burden of small and low-profit enterprises in 2018, and the tax burden of penetrating enterprises in the United States was also basically similar, which shows that the adjustment of the tax bracket of business income in the individual income tax reform is appropriate.

Figure 4-1 shows the comparison of the specific tax burdens.

Figure 4-1 Comparison of tax burdens.

Note: The thick line segment in the upper right indicates that the taxable income of the enterprise exceeds 1 million yuan and no longer belongs to a small low-profit enterprise.

This is because: first, after the halving tax standard for small and low-profit enterprises was increased from 500,000 yuan to 1 million yuan in 2018, if the taxable income is less than 1 million yuan, the actual tax burden rate is 28% (10% preferential enterprise income tax halving + 18% individual income tax on after-tax profit dividends, that is: 90% of after-tax profits, 20% = 18% of individual income tax interest dividends); Second, after the adjustment of the tax bracket of the individual income tax business income tax rate table, the upper limit of the bracket corresponding to the maximum tax rate of 35% has been increased from the original 100,000 yuan to 500,000 yuan, and under the progressive tax rate mode, the tax bracket of 500,000 yuan and below is subject to the tax rate of 5% and 30% respectively, so the actual tax rate is lower than the nominal tax rate of 30%.

When the taxable income is 500,000 yuan, the actual tax burden rate is 28% when the taxable income is 940,000 yuan, and when the taxable income is 1 million yuan, the actual tax burden rate is basically the same as the adjusted tax burden rate of small and low-profit enterprises; Third, after the tax reform in the United States, the maximum tax rate will be reduced from 37%, and the tax rate table of comprehensive income tax of individual income tax will be applied to penetrating enterprises, and then reduced to 80%, and the maximum tax burden rate will not be exceeded. When the taxable income of a penetrating enterprise in the United States is 500,000 US dollars, the actual tax burden rate after enjoying the preferential treatment is one percentage point higher than the tax rate of 500,000 yuan of taxable income of China's business income; When the taxable income is 1 million US dollars, the actual tax rate after enjoying the preferential treatment is one percentage point lower than the tax rate of 1 million yuan of taxable income on China's business income.

From January 1, 2019, in accordance with Article 2 of the Notice of the State Administration of Taxation of the Ministry of Finance on the Implementation of the Inclusive Tax Reduction and Exemption Policy for Small and Micro Enterprises (CS 2019 No. 13), the part of the annual taxable income of small and low-profit enterprises not exceeding 1 million yuan shall be included in the taxable income at a reduced rate of 25%, and the enterprise income tax shall be paid at a rate of 20%; For the part of the annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan, it shall be included in the taxable income at a reduced rate of 50%, and the enterprise income tax shall be paid at the rate of 20%. The above-mentioned small and low-profit enterprises refer to enterprises engaged in industries that are not restricted or prohibited by the state, and at the same time meet the three conditions of annual taxable income not exceeding 3 million yuan, the number of employees not exceeding 300 people, and the total assets not exceeding 50 million yuan.

Figure 4-2 Comparison of the comprehensive income tax burden of small and low-profit enterprises with the tax burden of business income.