Differences between subsidiaries and branches:
The branch company does not have the qualification of an enterprise legal person, all the property belongs to the head office, and the business scope shall not exceed the business scope stipulated by the head office. And the branch does not enjoy preferential treatment of enterprise tax alone, it shall be merged into the head office to pay enterprise income tax uniformly.
The subsidiary has the qualification of enterprise legal person and is an independent legal person. It carries out activities in its own name, and the creditor's rights and debts arising from its operation must be borne independently. The enterprise income tax of subsidiaries must be independently accounted for and declared and paid.
for instance
A catering enterprise is going to open 20 branches. It is estimated that the profit of each of these 20 branches is less than 6.5438+0 million yuan, which meets the standards of small and micro enterprises.
Case 1, setting up a branch.
Because the corporate income tax of the branch company needs to be collected and paid, all indicators after collection exceed the standards of small and micro enterprises, so it cannot enjoy the corresponding preferential tax policies, and it needs to be paid at the tax rate of 25%.
The corporate income tax of 20 stores totals 5 million yuan (20× 100×25%).
Case 2 Establishment of subsidiaries
As each branch meets the standards of small and micro enterprises, it can enjoy tax incentives and pay enterprise income tax at the rate of 5%.
The total corporate income tax of 20 stores is 6.5438+0 million yuan (654.38+000× 5%) × 20.
In this case, it is definitely more advantageous to set up a subsidiary.
However, no matter what kind of company you set up, you should proceed from the reality of the company. In the process of production and operation, with the development of business and the change of profit and loss, it is necessary to adjust the types of branches.
point out
In general, it is more advantageous for unstable new businesses to exist in the form of branches. In the early days of the establishment of branches, there may be long-term expenses but no income, which may easily lead to operating losses, or there are many branches, some of which have losses and some have high profits, so that the corporate income tax can be collected and paid by the head office, which can reasonably reduce the burden of corporate income tax.
On the other hand, the operation is stable, and it is expected to be profitable in a short time, or it will turn losses into profits soon. Consider setting up a subsidiary to separate profits and conduct independent accounting. At this time, subsidiaries can not only get the convenience of independent legal person operation, but also enjoy preferential tax policies for small and micro enterprises.