1. Reasons why sole proprietorship enterprises are favored In the past, the model of sole proprietorship enterprises was once sought after. This is mainly based on the following reasons:
(1) registered as a limited company, the company needs to pay enterprise income tax, and shareholders also need to pay personal income tax for dividends; A sole proprietorship enterprise only needs to pay personal income tax.
(2) In many areas, sole proprietorship enterprises can apply for preferential policies for approval and collection, and with the investment promotion policies of some parks, the comprehensive tax rate can be greatly reduced.
(3) The sole proprietorship enterprise is flexible in form and can be used as the design of the ownership structure of the enterprise.
For these reasons, many enterprises want to save taxes by registering sole proprietorship enterprises.
2. Problems and risks of tax saving through sole proprietorship enterprises Although sole proprietorship enterprises have some preferential tax policies, excessive use will also bring corresponding risks and problems.
(1) The tax rate may not decrease.
Due to the problem of sole proprietorship enterprises caused by the film and television industry, the approved collection policy in many areas has been tightened. Has the tax rate been reduced after the cancellation of the approved collection?
Let's assume that the taxable income of the enterprise is 6.5438+0.00 million yuan. When it reaches the standard of small-scale low-profit enterprises, the enterprise income tax is 50,000 yuan, and the personal income tax distributed by shareholders is 6.5438+0.9 million yuan. If you set up a sole proprietorship enterprise, you can apply for approval and levy (according to income of 654.38+0.5% and profit rate of 654.38+00%), so you need to pay individuals. However, if the sole proprietorship enterprise is not approved, the personal income tax is 284,500 yuan, which is greater than the corporate income tax and personal income tax for establishing a limited liability company.
Therefore, whether the establishment of a sole proprietorship enterprise can reduce the comprehensive tax burden depends on the specific situation. In some cases, the tax burden cannot be reduced.
(2) Not in line with the actual situation
The biggest risk of tax planning is to plan for the sake of planning regardless of the actual situation. Sometimes some shareholders set up a sole proprietorship enterprise just to avoid taxes and turn personal dividends into the operating income of the sole proprietorship enterprise. In this case, it is not in line with the actual situation, and it is not in line with commercial practice to register the enterprise as a shareholder to form competition with the company.
(3) The long-term development of the company was not considered.
Although individual proprietorship enterprises have tax advantages at present, they may not meet the needs of future enterprise development. Perhaps the enterprise needs to re-introduce partners or build a new organizational structure in the future, so it may not be suitable for sole proprietorship.
(4) the stability of the policy
The examination and approval policies of sole proprietorship enterprises and the tax refund policies of various places may change. Then once the policy changes, it will affect the choice of enterprises.
Therefore, when choosing a sole proprietorship enterprise model, we should also consider many factors and weigh the advantages and disadvantages.
3. How do enterprises determine the preferred tax saving scheme? When considering the tax scheme, enterprises need to comprehensively consider the following aspects:
(1) Tax-saving entities
If freelancers who provide services need to set up enterprises to operate, they can consider sole proprietorship, while if they are employees or shareholders of enterprises, it is not suitable to set up sole proprietorship for tax avoidance.
(2) The scale and qualification of the enterprise
If the upstream and downstream industries where the enterprise is located are large-scale companies, and it needs a certain scale to apply for qualification, then it is necessary to consider whether the sole proprietorship enterprise is suitable. Because when the enterprise has a certain scale, the degree of standardization of finance and taxation will be improved accordingly, so it may not meet the conditions for the approved collection.
(3) Enterprise development planning
If the enterprise has a future development plan and needs to design the equity structure, then perhaps a single sole proprietorship enterprise model may not be suitable.
(4) Applicable tax policies
Enterprises can enjoy certain preferential tax policies, which can greatly reduce the comprehensive tax burden, so there are many ways to choose, not necessarily limited to sole proprietorship enterprises. For example, tax incentives for small and low-profit enterprises, coupled with the deduction of R&D expenses, can reduce the tax burden by comprehensive application.
Generally speaking, although a sole proprietorship enterprise can save a sum of enterprise income tax, it is not necessarily the first choice for tax saving. For enterprises and individuals, it is necessary to comprehensively consider the situation of tax-saving subjects, the scale and qualification of enterprises, future development plans and applicable tax policies, and tailor the tax-saving plan. Only the right one is the best.
A sole proprietorship company is one of the ways for enterprises to carry out tax planning, but it is not necessarily the first choice.
Although the tax law stipulates a sole proprietorship company, this organizational model does not need to pay corporate income tax, but only needs to pay personal income tax; However, from the perspective of production and operation, long-term planning and development, and the operational risks borne by shareholders, enterprises should systematically and comprehensively consider the organizational model of enterprises.
First, the main advantages of a sole proprietorship company.
The sole proprietorship company is a non-legal entity, and the advantages of this organizational form are mainly reflected in tax collection and management, that is, enterprises only need to pay personal income tax when registering a sole proprietorship company; However, registered companies have to pay both corporate income tax and personal income tax. In addition, a sole proprietorship company has the opportunity to apply for individual income tax collection, provided that it can apply.
Another advantage is that the cost of establishing a sole proprietorship company is relatively low.
Second, the disadvantages of a sole proprietorship company.
1. The tax burden of a sole proprietorship company shall not be reduced.
The advantage of a sole proprietorship company in personal income tax is that it can enjoy the management mode of approved collection, but if it can't enjoy the approved collection of personal income tax, will the overall tax burden of the enterprise really come down?
In addition, the preferential tax rate of income tax for small and low-profit enterprises is obvious, that is, the taxable income is 6.5438+0 million yuan, and the collection rate of 5% is 6.5438+0 million yuan.
For example, the taxable income of a sole proprietorship company and a small profit-making enterprise is 30,000 yuan, so their taxable income is:
Personal income tax payable by a sole proprietorship company = 30,000 yuan * 10%- 1500 yuan = 1500 yuan (to be audited).
Individual income tax payable by a sole proprietorship company = 30,000 yuan/10% (profit rate) * 1% (approved levy rate) = 3,000 yuan (approved levy).
Enterprise income tax payable by small and low-profit enterprises = 30,000 yuan * 5% = 1.500 yuan.
If small-scale low-profit enterprises still need to pay full dividends to shareholders, the personal income tax payable is 28,500 * 20% = 5,700 yuan.
At this time, the sole proprietorship company has certain advantages over small-scale low-profit enterprises whether it adopts audit collection or verification collection.
For another example, the taxable income of a sole proprietorship company and a small-scale low-profit enterprise is 6,543,800 yuan, and their respective taxable income is:
Personal income tax payable by a sole proprietorship company = 654.38+00,000 yuan * 35%-65.500 yuan = 284.500 yuan (for audit collection).
Individual income tax payable by a sole proprietorship company = 654.38+00,000 yuan /654.38+00% (profit rate) * 654.38+0% (approved levy rate) = 654.38+00,000 yuan (approved levy).
Enterprise income tax payable by small and low-profit enterprises = 1 ten thousand yuan * 5% = 50 thousand yuan.
If the small and meager profit enterprise still needs to pay dividends to shareholders in full, the personal income tax payable is 950,000 yuan * 20% = 654.38+0.9 million yuan.
At this time, the sole proprietorship company has certain advantages in adopting the approved levy, but it has no advantage if it adopts the audit levy, which is even greater than the tax burden of small and meager profit enterprises.
After calculation, we find that only when the business scale of the sole proprietorship company is very small and the taxable income is very low, the tax burden is low and the advantages are obvious; On the other hand, if the approved levy is not adopted, the tax burden is greater than that of small-scale low-profit enterprises.
2. Shareholders' risks are further increased, and they need to bear unlimited corporate debt liabilities.
A sole proprietorship company is an unincorporated enterprise, and its shareholders need to bear unlimited liability, which is essentially different from a limited liability company. When the foreign debt of a sole proprietorship company is large and the sole proprietorship enterprise is unable to repay it, the shareholders need to repay it with family assets until the repayment is completed.
3. Shareholders' equity transfer and capital raising difficulties.
Because the sole proprietorship company is not a legal person enterprise, the governance structure is opaque and irregular, and of course there will be some problems in finance and management. Few investors in such enterprises are willing to invest in shares, and they will face the same problems in the process of external financing, so it is impossible to talk about the transfer of shareholders' rights and interests and the raising of capital.
Limited by the organizational form of sole proprietorship enterprises, it is also doomed that such enterprises will not grow and have limited room for growth.
In short, enterprises need to systematically consider taxpayers, business scale, business development model, business model and business characteristics when making tax planning. Not all business models are suitable for tax planning in the form of a sole proprietorship company. In addition, the tax planning of enterprises should conform to the provisions of the tax law, and grasp the policy scale within the policy scope stipulated by the tax law, otherwise enterprises will also bear certain tax-related risks.
September 8(th), 2020
Focus on finance and taxation: only to provide high-quality finance and taxation dry goods!
Many enterprises are troubled by problems such as heavy tax burden and no invoices, and often ask our professional financial and taxation institutions how to solve them. Our suggestion is to set up a sole proprietorship enterprise in a tax depression, which can make use of preferential tax policies in different regions to avoid taxes and reduce the tax burden reasonably. At present, sole proprietorship enterprises registered in Shanghai, Shenzhen, Chongqing and other regions can enjoy the preferential policy of collecting personal income tax with low tax burden. Therefore, sole proprietorship enterprises are more and more liked by enterprises and become the highlight of tax planning.
If an enterprise really wants to enjoy the tax policy dividend of tax depression, the prerequisite is that it needs to be supported by actual economic business and relevant evidence, which meets the requirements of authenticity, rationality and relevance. Otherwise, it will repeat the situation that Horgos has no registered place, no personnel and no real business tax avoidance. Then, how to stipulate the nature, tax burden for auditing accounts, approved collection conditions and tax calculation methods of a sole proprietorship enterprise? Next we will introduce them one by one.
I. Nature of a sole proprietorship enterprise A sole proprietorship enterprise is an enterprise legal person established in China and invested by a natural person. The property belongs to the investor, and the investor shall bear unlimited liability for the debts of the enterprise with his personal property. Typical characteristics are self-employment, self-financing and self-risk. Its business scope is relatively broad and flexible, mainly focusing on the service industry.
Second, the tax burden of a sole proprietorship enterprise According to the provisions of the Law on Sole proprietorship enterprises, a sole proprietorship enterprise must establish a financial system and conduct accounting. You can issue VAT invoices by yourself, including special invoices and ordinary invoices.
According to the NPC Standing Committee's decision on amending the Individual Income Tax Law of People's Republic of China (PRC), Presidential Decree No.9 of 20 18, the accounts of a sole proprietorship enterprise are relatively sound and the accounting is relatively clear, so it is necessary to audit the accounts and collect a tax. The annual taxable income (the balance of the total income after deducting costs, expenses and losses in each tax year) is calculated as "operating income", and the five-level progressive tax rate of 5%-35% is applicable, and the tax burden is heavier. If it is a small-scale taxpayer-owned enterprise with an annual sales income of less than 5 million yuan, the value-added tax rate is 3%, and it can enjoy the preferential policy of exemption from value-added tax with an annual sales income of less than 6.5438+0.2 million yuan; If it is a general taxpayer's sole proprietorship enterprise with an annual sales income of more than 5 million yuan, different VAT rates are applicable according to different VAT tax items.
Three. Conditions for approval and collection of a sole proprietorship enterprise If the accounts of the sole proprietorship enterprise are not perfect and it is impossible to accurately calculate the profits, the tax authorities will collect a tax by means of approval and collection. In this way, the enterprise not only reduces the tax expenditure, but also saves the cost of employing people.
Four. Individual income tax is calculated and paid by the sole proprietorship enterprise according to the "operating income" at the five-level excess progressive tax rate. If the tax is approved, it will be calculated and paid according to the following formula.
Taxable income = total income * taxable income rate
Personal income tax payable = taxable income * applicable tax rate-quick deduction
Remarks: The tax authorities will regularly announce the taxable income rate of each industry in the previous year.
5. The case shows that if a sole proprietorship enterprise in the service industry is established in Shanghai with an annual invoice of 2 million yuan, which belongs to a small-scale taxpayer, and the taxable income rate of the service industry is 10%, what is the individual tax and comprehensive tax burden respectively?
Taxable amount = total income * taxable income * applicable tax rate-quick deduction
= 2000000/(1+3%) *10% * 20%-10500 = 28334.95 (yuan)
Tax burden = tax paid/total income
=28334.95/2000000( 1+3%)= 1.46%
VAT payable =
2000000/(1+3%) * 3% = 58252.43 (yuan)
Additional tax payable =
58252.43*9%=5242.72 (yuan)
Comprehensive tax burden = individual tax, value-added tax and total income added/actually paid.
=(28334.95+58252.43+5242.72)/2000000( 1+3%)=4.73%
It can be seen that the tax burden of sole proprietorship enterprises is relatively low, which is very attractive to enterprises. Small-scale taxpayers in sole proprietorship enterprises may also be exempted from value-added tax if their annual income is less than 6.5438+0.2 million yuan; In addition, Shanghai's surtax rate is low, at 9%.
Conclusion From the above analysis, we know that a sole proprietorship enterprise registered in Shuiwa does not need to pay 25% corporate income tax, but only needs to pay personal income tax with lower tax burden according to the approval, and there is no case of paying 20% personal income tax through profit sharing. General taxpayers can also fully deduct the special invoices issued by sole proprietorship enterprises. This is the charm of a sole proprietorship enterprise in tax planning. Finally, remind enterprises once again that they need to rely on real business to design tax financing for sole proprietorship enterprises in tax depressions, so as to achieve the trinity of contract flow, capital flow and bill flow, and reduce the fiscal and tax risks of enterprises while achieving the purpose of reasonable tax avoidance.
Great! Don't get lost!
The sole proprietorship enterprise model is one of the options, but it is not necessarily the first choice. As we all know, as a company legal person, the profits of an enterprise need to pay 25% corporate income tax, and after-tax profits are distributed to natural person shareholders, and 20% personal income tax is also paid, with a comprehensive tax rate of 40%. The operating income of a sole proprietorship enterprise does not need to pay corporate income tax, but only needs to pay 5% to 35% personal income tax, and the tax rate is obviously lower than that of a corporate enterprise.
In order to attract investment, many places, especially some places, can levy personal income tax on the operating income of sole proprietorship enterprises, and the actual tax burden is low. Because of this, the sole proprietorship enterprise model has become an important tool for tax planning. Coupled with the exaggerated publicity of some service organizations, it seems that a sole proprietorship enterprise is omnipotent.
In fact, a sole proprietorship enterprise is not omnipotent, but also has its drawbacks, and it is even more impossible to solve all tax problems.
1. Investors bear huge risks.
The investors of a sole proprietorship enterprise shall be jointly and severally liable for the debts of the enterprise; However, the shareholders of a corporate enterprise are only liable for the company's debts to the extent of their capital contribution. Therefore, investors bear different risks in the two forms of enterprise organization. Especially in some high-risk industries, the mode of sole proprietorship is adopted, which increases the risk of investors. Once they are badly managed, they may go bankrupt
2. The sole proprietorship model is not suitable for enterprises to become bigger and stronger.
(1) A sole proprietorship enterprise cannot be qualified as a person, has no capacity for civil rights and civil conduct, cannot bear civil liability independently, and has weak ability to resist risks.
(2) Poor financing ability is not conducive to raising funds needed for enterprise development.
(3) The poor anti-risk ability of sole proprietorship enterprises undoubtedly increases the risks of customers and suppliers. Therefore, most people prefer to choose corporate enterprises as partners.
3. The sole proprietorship enterprise model is more suitable for the service industry and some high-income people.
Personally, the sole proprietorship enterprise model is more suitable for advertising design, financial consulting, information consulting and other service industries, as well as some high-income people, such as Taobao celebrities, network anchors, lawyers, designers, performing stars and so on.
To sum up, a sole proprietorship enterprise is not omnipotent, and it is impossible to solve all tax problems. It is one of the tax saving options for enterprises, but it is not necessarily the first choice.
When it comes to how to save taxes, it is inevitable to say how low the tax burden can be reduced through a sole proprietorship, but it often ignores the huge risks that may exist in a sole proprietorship. Lao Yang Accounting published the following three risks that he personally thought existed in a sole proprietorship enterprise:
1. Debt risk
A sole proprietorship enterprise is not a limited company, and shareholders are jointly and severally liable for debts that cannot be repaid. For example, a sole proprietorship enterprise owes 6,543,800 yuan, but the enterprise can only pay 200,000 yuan, and the remaining 800,000 yuan needs to be paid by shareholders with personal property.
2. Default risk
When enterprises enter the park, the park will give many preferential promises, and there may be some restrictive conditions to enjoy these preferential policies. For example, enterprises pay taxes of 6.5438+0 million yuan, and the park returns 200,000 yuan. If the enterprise fails to meet the requirements, it may not get a penny back. Even if the enterprise reaches it, there may be risks that the relevant preferential commitments cannot be fulfilled in time.
3. The tax risk is enormous.
If the sole proprietorship adopts the approved tax collection and management method, it will be more than 6,543,800+0,000. It is conceivable that how big is the company's annual operating income? The operating income is huge. Does the sole proprietorship enterprise that adopts the approved levy still meet the approved levy standard? In the case that the capital flow, information flow and physical logistics of enterprises are very transparent, if the tax authorities check the tax of enterprises, enterprises will face great tax risks.
Sole proprietorship enterprises are not necessarily the first choice for enterprises to save taxes. In some cases, a wholly-owned enterprise does have the advantage of tax saving, but not in all cases.
When the taxable income is low, the sole proprietorship enterprise has a comparative advantage, but when the taxable income exceeds a certain critical point, the overall tax burden of the limited liability company is low.
In terms of taxes other than income tax such as value-added tax and consumption tax, sole proprietorship enterprises have no advantage. The main difference between a sole proprietorship enterprise and a corporate enterprise lies in its legal status. One is a corporate enterprise and the other is not qualified as a legal person. The tax difference between the two is only reflected in the income tax.
However, taxpayers in China need to pay not only income tax, but also dozens of other taxes. In terms of taxes such as value-added tax and consumption tax, the two are treated equally, and there is no tax difference.
Therefore, in terms of taxes other than income tax, sole proprietorship enterprises do not have any tax-saving advantages compared with corporate enterprises.
Only when the annual taxable income is low, the sole proprietorship enterprise has the advantage of tax saving. Whether it is personal income tax or enterprise income tax, there are two ways to collect it: audit collection and verification collection.
Whether it is an audit collection or an approved collection, it needs to be compared with the same taxable income, so that the comparison is meaningful.
For example:
1. The taxable income of sole proprietorship enterprise A and limited liability company B is 30,000 yuan.
A Personal income tax payable = 310%-1.500 =1.500 yuan.
Assuming that enterprise B meets the requirements of small-scale low-profit enterprises, the enterprise income tax to be paid is 35,000% =1.500 yuan;
In order to pay dividends, enterprise shareholders also need to pay 20% personal income tax from after-tax profits = 28,500 20% = 5,700 yuan.
Compared with the two, as a sole proprietorship enterprise, it is obviously more advantageous because it pays less corporate income tax.
2. The taxable income of sole proprietorship enterprise A and limited liability company B is 6,543,800 yuan.
A tax payable = 1 10,000 35%-65,500 = 284,500 yuan.
Assuming that enterprise B meets the requirements of small-scale low-profit enterprises, the enterprise income tax payable is = 1 5% = 50,000 yuan; Corporate shareholders want to pay dividends, but also need to pay a tax from the after-tax net profit = 950,000 20% = 654.38+0.9 million yuan. A total of 240,000 yuan of individual tax and enterprise income tax was paid.
It can be seen that when the taxable income gradually increases, the sole proprietorship enterprise will no longer have an advantage.
So when the taxable income is equal to what, is the tax burden of income tax the same? According to the last example, it can be concluded that when the taxable income of the two is less than a certain value of 654.38+0 million, the tax burden is the same.
Therefore, the individual tax rate is still 35%, and the corporate income tax rate is still 5%. Suppose this number is X.
35% x-65500 = 5% x+(1-5%) x 20%, X = 595,454.55 yuan.
When the annual taxable income of a sole proprietorship enterprise and a limited liability company is 595,454.55 yuan, their taxable amount is the same, which is 65,438+042, 900 yuan.
When the taxable income is less than this number, individual investment enterprises are more dominant; When the taxable income exceeds this number, the overall tax burden of the limited liability company is low.
To sum up, compared with a limited liability company, a sole proprietorship enterprise is not absolutely tax-saving, but has a comparative advantage within a certain range.
The answer to this question is as follows:
1. The sole proprietorship enterprise model is not necessarily the first choice for enterprises to save taxes. In fact, the current preferential income tax policies for small and micro enterprises are very strong. Assuming that the taxable income of a small and micro enterprise is below 6.5438+0 million yuan a year, it is 6.5438+0 million yuan. At present, the enterprise income tax is 25,000 yuan. If the net profit of another 975,000 yuan is fully distributed, 20% dividend and personal income tax of 6,543,800 yuan+0.95 million yuan will be paid, totaling 220,000 yuan. That is, the combined comprehensive tax rate of enterprise income tax and individual income tax is 22%.
2. Assuming that the taxable income of a sole proprietorship enterprise is 6.5438+0 million yuan, the taxable amount = (1000000 * 35%-65500 quick deduction) *50% (50% reduction or exemption) = 184500 yuan, and the actual income tax rate is/kloc-.
3. If the taxable income exceeds 6,543,800 yuan and is less than 3 million yuan, it is assumed to be 3 million yuan to simplify the calculation. The actual enterprise income tax payable is 225,000 yuan. The net profit is 2.775 million yuan, and the personal income tax is 555,000 yuan at 20%, totaling 780,000 yuan, and the comprehensive income tax rate is 78/300 = 26%.
4. If the taxable income of a sole proprietorship enterprise exceeds 6.5438+0 million yuan, it shall not exceed 3 million yuan. Suppose it is 3 million yuan, the personal income tax is 300 * 35%—65,500 = 984,500 yuan, and the actual personal income tax rate is 98.45/300 = 32.82%.
Through the above analysis, it is necessary to comprehensively analyze and determine what kind of tax saving is based on the scale and profitability of the enterprise. In practice, it is another matter for a few places to verify individual income tax for sole proprietorship enterprises, deliberately concealing income and evading taxes.
Each has its advantages and disadvantages, but the disadvantages outweigh the advantages. When the turnover and profit of the enterprise increase, the sole proprietorship enterprise needs to pay 20% tax, which far exceeds the upper limit of enterprise income tax, because the taxpayer of the sole proprietorship enterprise is an individual, not an enterprise, so the disadvantages are very obvious. 1. If the enterprise has no creditor's rights and debts, it will really reduce the cost of paying enterprise income tax. However, if the enterprise has creditor's rights and debts, as a shareholder of a wholly-owned enterprise, it needs to bear unlimited joint and several liabilities. Even if all the assets of the company are repaid by auction, you should repay the insufficient part after making money until all the debts are paid off. Therefore, the unlimited joint liability of a sole proprietorship enterprise is basically a lifelong debt with shareholders, unlike a limited liability company, which bears limited liability pressure.
2. If an enterprise wants to save taxes, it needs to carry out the top-level design of the enterprise. In the existing enterprise form, the sole proprietorship enterprise is a dangerous company form. It is not recommended to register a sole proprietorship company. In order to save taxes, it needs to be designed. First of all, a wallet company should be established, with shareholders holding 99% and legal persons holding 1%. Then this wallet company only invests, not operates. The wallet company is investing in the project company. The wallet company accounts for 99% of the shares of the project company, and 1% is owned by the legal person. In case of business, an operating company will be established when the invoice is issued, and if there are other businesses, the business will continue to be split to enjoy the national 15% tax reduction and exemption policy for small and micro enterprises. If the business is too big, we will split the project company into wallet company and wallet company.
To sum up, tax saving is a professional operation method, which requires the overall design of tax agents and chief financial officers to realize tax saving for enterprises within the scope of fiscal and taxation laws stipulated by the state. A sole proprietorship enterprise is just a way for enterprises to save taxes. But it is definitely not the only way. There are various ways and means for enterprises to save taxes. It is necessary to combine the city where the enterprise's own industry is located with tax laws and fiscal and taxation laws. And comprehensively evaluate the founder type, industry, business model, customers, government-enterprise relationship, etc. Many agency registration companies directly help customers register a sole proprietorship enterprise, or register a sole proprietorship enterprise in a tax depression. Then let customers use this wholly-owned enterprise to operate. This practice is extremely irresponsible, although sole proprietorship enterprises can pay taxes. But there are also many problems. The biggest problem is that sole proprietorship enterprises bear unlimited joint liability, so I highly recommend sole proprietorship enterprises to operate directly. Take a sole proprietorship as a supply chain enterprise or an intermediate enterprise to bridge your limited company. I believe entrepreneurs should be able to understand what I said. A sole proprietorship enterprise. It is not convenient to do financing listing, attract government subsidies, and apply for loan refinancing to attract shareholders. And so on and so forth, many inconveniences in the process of the company's great development. Therefore, a sole proprietorship enterprise can not directly face users, nor can it be directly used for operation, but can only be used as a shell company or an intermediate company. Every tax optimization method is different. It may be better for enterprises with higher net profit to use sole proprietorship enterprises to convert profits. Besides, there are many taxes, such as value-added tax and personal income tax. Tax saving of enterprises is a comprehensive problem. Try to rely on your company as a scientific and technological enterprise. As far as possible to apply for high-tech enterprises, you can apply for municipal high-tech or national high-tech Many tax problems can be solved in one step. I hope my answer is helpful to you. Please ask me more questions. Made more than 100 short videos of entrepreneurship. Please come and have a look.
A sole proprietorship enterprise does not need corporate income tax in Ghana, but it needs to pay personal income tax. What is the difference between the corporate income tax policies of limited companies and joint-stock companies?
Sole proprietorship is a way to save taxes, but it must not be used blindly, and it is not a paradise for saving taxes. Its business model is only suitable for specific business situations, so don't be confused by various tax advertisements.
First, the advantages of a sole proprietorship enterprise. 1, institutional characteristics. Individual enterprises implement unlimited responsibility system, assets between individuals and enterprises are not separated, and mutual transfer is tax-free. Enterprises belong to individuals, and one person has the final say.
2. Tax burden advantage. Individual enterprises only need to pay personal income tax, and enterprises pay corporate income tax. The profits of enterprises are transferred to individuals, and individual enterprises do not pay taxes. Shareholders of general enterprises pay 20% personal income tax on dividends.
Because individual enterprises can apply for tax payment by means of verification and collection, and the tax bureau will not approve it when the general enterprises are large, there must be corresponding cost invoices for pre-tax deduction.
Because many investment parks have local preferential policies, a single enterprise can reduce the comprehensive tax burden to 1.5%. The most favorable tax rate for general enterprises is around 5%, and the tax rate for profits exceeding 3 million is 25%.
Second, the disadvantages of a sole proprietorship enterprise. 1, unlimited responsibility system is not only a centralized system, but also a personal responsibility system, which assumes unlimited responsibility for the enterprise with all personal assets. General enterprises only need to bear the responsibility within the investment limit. Therefore, when Fan Bingbing pays taxes, there will be situations of borrowing money and collecting money everywhere. How to be a limited liability enterprise, without loss or repayment.
2. Individual enterprises can't go public and can't introduce other capital. This is the limitation of the long-term development of a single enterprise.
3. Individual enterprises are not standardized and have limited business, which is not suitable for group-type diversified enterprises with wide business scope and long channels.
In a word, personal mode is a good tax-saving choice. However, you should also choose according to your own business reality. We must never give up the long-term development prospects for the sake of temporary interests.