A is a clothing company that has been operating for many years. He plans to open 20 stores in many cities in 2022. Because they are newly established, the profits of each of these branches will not exceed1000000.
Branch:
At the time of tax calculation, the branch company collects taxes, which makes a lot of profits, exceeding the standards of small and micro enterprises, and cannot enjoy tax concessions. It needs to pay taxes at 25%, about 5 million.
Subsidiary:
Each subsidiary has a separate tax registration, so each subsidiary meets the standards of small and micro enterprises in terms of the number of employees and income. According to estimates, the tax revenue is around 1 million, and the tax savings before and after are around 4 million. Therefore, it is more appropriate to set up a subsidiary in terms of tax saving alone.
Dalian Seafood Hotel Catering Company is a well-known enterprise. In 2022, it is planned to open 20 branches in other cities. As they are all newly established, it is estimated that the profit of each of these 20 stores is less than 6,543,800 yuan.
Q: Is it more tax-saving to set up branches or subsidiaries among 20 branches?
1. The corporate income tax of the branch company needs to be paid in a lump sum. If it exceeds the standard of small and micro enterprises, it cannot enjoy tax preference, and the tax rate is 25%. Total corporate income tax of 20 stores = 20 *100 * 25% = 5 million yuan.
2. Subsidiaries that pay taxes independently and meet the standards of small and low-profit enterprises can enjoy tax incentives for small and micro enterprises, and need to pay enterprise income tax at the rate of 5%. Total corporate income tax of 20 stores = 20 *100 * 5% =1000000 yuan, tax saving = 500-10000000 yuan = 4 million yuan.
remind
1. Branches do not enjoy preferential policies for small and meager profit enterprises alone. For branches, they should be merged into the head office to collect and pay enterprise income tax. If the collected data meet the requirements of small-scale low-profit enterprises, they can enjoy preferential policies for small-scale low-profit enterprises as a whole.
2. If the branches do not merge into the head office and choose to pay taxes separately according to independent taxpayers, they can't enjoy the preferential policies of small and low-profit enterprises and can only declare and pay taxes at the basic tax rate of 25%.
3. If the head office and all branches calculate together, the annual taxable income, the number of employees and the total assets meet the requirements, you can enjoy the preferential income tax policy for small and meager profit enterprises. Even if the indicators of a single branch meet the requirements, they cannot enjoy preferential treatment.