How are company profits distributed to individuals?

1. Interest/Rent The interest and rent on the company account can solve some tax problems. Individuals lend their funds to the company, sign loan agreements in accordance with relevant regulations, and stipulate loan interest. The loan interest obtained by individuals is naturally legal, and the cost of corporate borrowing can also be deducted before tax within the scope prescribed by law. 2. Reimbursement of expenses is a routine means for most enterprises. Shareholders will take back the documents obtained by personal and family consumption to the company for reimbursement and collect them as company expenses. 3. Company Dividends As a corporate enterprise, if the company directly distributes the after-tax profits to individuals, it will face the "double taxation" situation in which individuals pay enterprise-level income tax and personal income tax, which is very unfavorable. If you intend to transfer funds to investors through dividends, you can choose to set up a limited partnership to avoid double taxation. Partnership enterprises do not levy enterprise income tax, but only levy individual income tax at the investor level. 4. The first few ways of reasonably saving taxes by using third-party tax financing tools are also reasonable and compliant, but their restrictions are relatively large and the intensity of tax saving is relatively small, which is not the best tax saving scheme for enterprises. At present, many well-known enterprises and group companies are using the third-party tax collection and management tool Bisui, which is a very good choice. This way can not only effectively avoid dividends, but also save taxes reasonably and legally, without the limit of quota, and enjoy the preferential policies approved by various places, with the greatest efficiency of saving taxes and reducing fees for enterprises.

There is a certain order in the distribution of company profits. The old rule is that according to the General Principles of Enterprise Finance and other relevant laws and regulations, the profits of enterprises after paying income tax shall be distributed in the following order, unless otherwise stipulated by the state:

First, make up for the losses of enterprises in previous years.

2. Withdraw 10% statutory surplus reserve. After the accumulated balance of surplus reserves reaches 50% of the registered capital, it may not be withdrawn. The reserve fund drawn by foreign-invested enterprises shall also be implemented in this way.

3. Extract 5%- 10% public welfare fund.

Four, according to the articles of association of the enterprise or the resolution of the investor, to extract any surplus reserve.

5. Distribute profits to investors. The undistributed profits of enterprises in previous years can be merged into this year and distributed to investors.