First, how to extract the profits of private companies?
The profit distribution of private enterprises is the same as other enterprises. Profit distribution generally follows the following procedures: make up for the losses of previous years, pay income tax, make up for the losses of previous years with after-tax profits, and withdraw the provident fund and public welfare fund for distribution to shareholders. The entry of profit distribution is: profit distribution-undistributed profit of loan; Dividends are paid by borrowing from dividend payable, dividend payable and cash on hand.
How to squeeze the profits of private companies
Two, how to extract the profits of sole proprietorship enterprises and partnerships?
The profit distribution and loss sharing of a partnership sole proprietorship enterprise shall be handled in accordance with the provisions of the partnership agreement; If the partnership agreement is not stipulated or clearly stipulated, it shall be decided by the partners through consultation; If negotiation fails, the partners shall allocate and share the capital contribution in proportion to the paid-in capital; If the proportion of capital contribution cannot be determined, it shall be equally distributed and shared by the partners. The partnership agreement shall not stipulate that all profits shall be distributed to some partners or all losses shall be borne by some partners.
If it is an individual industrial and commercial household, a sole proprietorship enterprise or a partnership enterprise, it is not necessary to pay individual income tax for production and operation and then pay dividends.
According to the "Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Printing and Distributing the Provisions on Individual Income Tax of Investors in Sole proprietorship Enterprises and Partnership Enterprises", the document stipulates:
The balance of the total income of a sole proprietorship enterprise and a partnership enterprise after deducting costs, expenses and losses in each tax year shall be regarded as the income of investors' personal production and operation. The income from production and operation includes the income distributed by the enterprise to individual investors and the income retained by the enterprise in the current year. Since the income from production and operation of sole proprietorship and partnership enterprises has been taxed according to the item of "income from production and operation of individual industrial and commercial households", sole proprietorship and partnership enterprises do not need to pay personal income tax when distributing after-tax profits.
3. Can all undistributed profits be used to extract surplus reserves?
Except the statutory surplus reserve 10% stipulated in the company law, the profit distribution of the enterprise is decided by the shareholders' meeting of the enterprise, and of course any surplus reserve can be transferred.
It is not carried forward every month, but only at the end of the year, because the monthly accounting data is not the final data, and only after the annual report comes out, the undistributed profit after the income tax is settled is the accurate data.
However, why should it all be transferred to surplus reserve? Putting it in "undistributed profit" is the same as putting it in "surplus reserve" account.
If it is a capital increase, it will be too late to carry it forward at the same time.
The statutory surplus reserve of listed companies shall be drawn at 10% of after-tax profits, and shall not be drawn when the cumulative amount of statutory surplus reserve reaches 50% of the registered capital. How to extract the profits of private enterprises? The legal express xiaobian ends here. I hope it helps you. If you have more legal questions, you can consult the lawyers of Law Express.