Value-added tax: Value-added tax is paid for the daily business of law firms according to "consulting services". The main types of business carried out by law firms are legal consultation and legal consultant. According to the Measures for the Implementation of the Pilot Project of Changing Business Tax to Value-added Tax (Caishui (2016) No.36), such businesses should be taxed according to the "consulting service" in the "forensic consulting service". The calculation method of VAT has nothing to do with the registration type.
1. If it is a general taxpayer, the applicable tax rate is 6%, and the input tax can be deducted. At the same time, the taxable amount of 10% can be deducted according to the increase of deductible input tax in the current period.
The general taxpayer's tax calculation method is current output tax-current input tax, and the tax is paid according to the balance.
At the same time, since the law firm is a producer service taxpayer, according to Article 7 of the Announcement of the General Administration of Customs of the Ministry of Finance on Deepening the Reform of Value-added Tax (Announcement of the General Administration of Customs of the Ministry of Finance +09 No.39), from April of 20 19 to February of 2002/kloc-0,
Generally speaking, under the background of "tax reduction and fee reduction", the tax burden of such general taxpayers is relatively stable as long as their accounting is accurate.
However, because the cost of law firms is mainly human resources, there are few other input taxes; However, many law firms with good business performance have high incomes, resulting in high actual tax burden.
Then you can consider paying taxes according to small-scale taxpayers, or if eligible general taxpayers are registered as small-scale taxpayers.
2. If it is a small-scale taxpayer, the levy rate of 3% shall apply, and the input tax shall not be deducted, and the deduction shall not be added.
Small-scale taxpayers have simple taxation methods and low accounting requirements, and the actual tax burden can be controlled below 3%.
Personal income tax: as a partner or investor of a partnership or sole proprietorship, it is paid according to the operating income. 1. As a partner, tax should be paid according to the operating income.
If it is a partnership law firm, with each partner as the taxpayer, the income from its production and operation, including the income distributed by the partnership to the partners and the profits retained by the enterprise in the current year, shall be taxed according to the principle of "distribution first, then tax".
Two. Personal income tax payment of law firm employees
If it is an employee other than a partner of a law firm, the handling fee can be deducted by 35% from the income in the current month. Applicable to employee lawyers who implement the income sharing method. The scope of funds for handling cases includes expenses such as communication, information, communication and hiring personnel.
After deducting the funds for handling cases, the balance will be merged with the wages paid by the law firm into the taxable item of "income from wages and salaries" to pay personal income tax.
As the director of a law firm and a certified tax accountant, I have been involved in the establishment of a law firm for almost 20 years. Tell you from your own experience that law firms should pay attention to the following points: 1. Once the annual income of the firm exceeds 5 million yuan, especially now, it will be upgraded from a small-scale taxpayer to a general taxpayer, and the VAT rate will rise from 3% to 6%. If it is levied by auditing, each income will be paid three points more value-added tax. Therefore, it is also important to moderately control the income scale. For example, we can consider setting up more branches and registering more firms to control the VAT rate. 2. Because law firms are established according to the Lawyers Law, and the law firms stipulated in the Lawyers Law are mainly partnership and individual firms. In the tax law, partnership enterprises do not have to pay enterprise income tax, but only pay individual taxes with reference to individual industrial and commercial households. Therefore, the common tax saving method of law firms is approval. Unfortunately, this collection mode has been stopped by State Taxation Administration of The People's Republic of China, but the law firms registered earlier still collect taxes according to the approved collection method. This taxation model is more beneficial to law firms, because the costs of law firms are mainly rent, transportation, gas, water and electricity, etc. If there are not so many invoices to check in the audit collection, the salary of the law firm will not be paid except for assistants, interns, front desk logistics, financial accounting and so on. It can be seen that in the audit mode, it is generally difficult to find invoices to increase costs. On the contrary, under the approved payment method, the firm does not need to find invoices and has no accounting data to file. As long as the invoice is issued for each business, the tax authorities will automatically convert it into a collection rate according to a certain profit rate (mostly 25%), and the value-added tax and individual tax will be collected together (in fact, it is deducted from the account of the firm, and now it may be directly deducted from the partner's bank card). The tax rate is related to the number of partners in the company. It can be said that the more partners, the better. Why? Because if an invoice of 1 10,000 is issued, the tax system will automatically confirm the profit of 250,000, that is, the taxable income, and divide the number of partners by 250,000. You can think about the difference between three partners and 10 partner. 25/ After the number of partners, it is the taxable income of each partner, and then the tax is deducted according to the tax payment method corresponding to individual industrial and commercial households. 3. After the above analysis, the law firm, as a partnership established according to the Lawyers Law, needs to pay value-added tax and individual tax, and does not need to pay enterprise income tax. Under the approved collection mode, partner lawyers can directly pay taxes and sign changes without any formalities. Non-partner lawyers need to deduct taxes according to the employees they hold and deduct costs from invoices. Under the mode of audit collection, partners and non-partners are treated the same, and both need to deduct costs, otherwise they need to pay more taxes. As for the value-added tax, because it is a turnover tax, under the approved collection mode, the tax is controlled by votes, that is, the tax rates of 6% and 3%, depending on whether you are a general taxpayer or a small-scale taxpayer. Of course, at present, in non-Hubei areas, small-scale firms do not have to pay VAT for issuing ordinary tickets, but they need to pay 1% for issuing special tickets. However, this policy will end at the end of the year. If you still don't understand after reading the above, there is really no way. I once gave a similar course to the finance of law firms in the city in the law school organized by Shanghai Lawyers Association, but I couldn't find PPT. If you really need to know, just trust me privately.
Although law firms are also civil subjects, they are very different from ordinary companies in essence.
Law firms are generally non-legal partnership organizations and cannot obtain practice qualifications. Established in the form of general partnership or special general partnership. The general partner shall bear unlimited joint liability, and the limited partner shall bear limited liability with its capital contribution.
Although law firms are different from ordinary enterprises, there is not much difference in tax treatment. Similarly, there are value-added tax, urban maintenance and construction tax and so on. As long as the corresponding taxable behavior occurs, it is necessary to declare the corresponding taxes and fees.
Moreover, law firms can also become ordinary or small-scale taxpayers, and law firms that become small-scale taxpayers can also enjoy tax incentives for small-scale taxpayers.
In terms of tax treatment, law firms and partnerships are basically the same, and they are not complicated. The difficulty lies in the tax treatment of practicing lawyers.
Generally speaking, lawyers themselves only need to pay personal income tax. However, different types of lawyers have different tax items.
1. Partner lawyers pay personal income tax according to their business income.
In other words, this lawyer not only handles the case himself, but also is a partner of this law firm. As a partner lawyer, he should pay personal income tax on his business income.
According to the income of the law firm for one year, the balance after deducting costs, losses and making up losses shall be distributed according to the partnership agreement of the partners of the law firm, and the partners shall pay personal income tax on operating income according to the income.
It seems simple, but the calculation process of taxable income of law firms is rather troublesome, which is somewhat similar to the accounting treatment process of enterprise income tax, so I won't go into details here.
2. The hired lawyers pay personal income tax (comprehensive income) purely according to their salary income.
This is a lawyer hired by the law firm, but the salary of lawyers is very different from that of ordinary enterprise employees. For example, employees in enterprises are generally based on basic salary plus bonus, while lawyers' income cannot be fixed. The more cases they handle, the more income they get, which is somewhat similar to the sales of enterprises.
Although they are all income from wages and salaries, they are different when calculating taxable income. If employees' lawyers and law firms adopt the income sharing method, the income will be included in wages and salaries after deducting a certain percentage (30% in many places) of handling fees. This case handling fee mainly refers to the necessary expenses such as transportation fees and information fees generated by lawyers in the process of handling cases. If the law firm reimburses this part of the expenses, it is not allowed to deduct it according to the proportion of 30%.
3. Part-time lawyers pay personal income tax (comprehensive income) according to labor remuneration.
Now, labor remuneration should also be merged with wages and salaries and included in the comprehensive income settlement.
Generally speaking, except that there is no enterprise income tax, law firms are not much different from more general enterprises in tax treatment, and are basically consistent with partnership enterprises in tax payment logic.
The law firm does not need to apply for a business license, but was established with the approval of the judicial department. Belonging to other economic institutions, the partnership enterprise law or the sole proprietorship enterprise law is not applicable at all.
Law firm is a special industry, which has similarities and differences with general enterprises in taxation!
First of all, as an institution, a law firm provides business services to the outside world and obtains business income. Since it is operating income, it involves value-added tax, urban maintenance and construction tax, education surcharge and local education surcharge; In addition, most law firms are partnerships, and some are sole proprietorships. No matter what form it is, it does not have the qualification of a legal person, so it is not necessary to pay enterprise income tax, which is different from ordinary enterprises.
For example, a law firm is a small-scale taxpayer with an operating income of 6.5438+0.03 million yuan, and the taxes to be paid are as follows:
1. value-added tax According to the provisions of the reform document, the operating income of law firms belongs to "consulting services" in "modern service industry". General taxpayers levy VAT at the rate of 6%, while small-scale taxpayers simply levy VAT at the rate of 3%.
VAT payable =103/(1+3%) * 3% = 30,000 yuan;
Please note that if the law firm is a general taxpayer, the tax calculation method of VAT is output less input, and the tax rate is 6%. In addition, affected by the epidemic, the collection rate of small-scale taxpayers has dropped from 3% to 1%.
2. Urban maintenance and construction tax Urban construction tax is based on the actually paid value-added tax, and the tax rates of urban areas, counties and towns are 7%, 5% and 1% respectively. Suppose in urban areas:
Payable urban maintenance and construction tax = 3×7% = 0.2 1 ten thousand yuan;
3 education surcharge is based on the actual value-added tax paid, and the tax rate is 3%.
Additional education fee payable =3*3%=0.09 million yuan;
4. Local education surcharge, like education surcharge, is based on the actually paid value-added tax, and the tax rate is 2%.
Surcharge to local education =3*2%=0.06 million yuan;
5. Stamp Duty Stamp duty is levied according to tax items, and consulting service contracts signed by law firms and clients are not within the scope of stamp duty collection.
6. Individual Income Tax According to the provisions of the Individual Income Tax Law, law firms pay individual income tax according to the "income from production and operation", and the tax rate is shown in the following table:
Suppose the taxable income of this law firm is 400,000 yuan, and the personal income tax payable is 40 * 30%-4.05 = 79,500 yuan.
Special reminder:
1. On-the-job employees of law firms should declare personal income tax in full in accordance with the provisions of the Individual Income Tax Law; 2. If an external lawyer provides services and pays remuneration, he shall withhold and remit personal income tax according to "remuneration for labor services", obtain invoices in accordance with regulations and pay before tax; 3. When the partners of the lawyers funded by the law firm pay the profits after operating income tax to the individual partners, they don't need to pay the personal income tax of dividends again!
I am a young man in finance and taxation. I hope my answer can help you! According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Relevant Business Issues of Personal Income Tax on Income Obtained by Practitioners of Law Firms (Guo Shui Fa [2000]149), personal income tax is levied according to the tax item of "income from production and operation of individual industrial and commercial households". After 20 1 965438+1October1,the income from production and operation of individual industrial and commercial households was changed to: operating income.
When an investment lawyer partner of a law firm pays after-tax profits from business income and pays dividends to the partner personally, he will no longer pay dividend tax. The income value-added tax of law firms belongs to "consulting service industry" in "modern service industry" and "judicial consulting service industry". General taxpayers collect VAT at the rate of 6%, while small-scale taxpayers simply collect VAT at the rate of 3%.
There is no need to pay stamp duty on consulting service contracts signed between law firms and clients. There are some suggestions on the taxation of law firms.
After the initial establishment, it is suggested that small-scale taxpayers should be treated first, and with the increase of operating income, they should be turned into general taxpayers, with low VAT tax burden in the early stage;
Welfare, subsidies, daily expenses, etc. If it belongs to a lawyer, as long as it is related to the operation of the unit, it should be reproduced as truly as possible;
For some internal management services that are difficult for law firms to complete independently, such as fiscal and taxation services, information network services, document arrangement, data management, marketing, logistics services, etc. , service outsourcing mode can be adopted;
Daily procurement, maintenance and decoration of office supplies of law firms. Try to get special tickets to deduct VAT;
Law firms should also pay attention to intangible assets such as their own brands, because amortization of intangible assets is included in the cost, which can greatly reduce the tax on operating income;
Partnership law firms must pay attention to the critical point of partners' operating income, because the tax rates will vary greatly;
If the actual expenses paid in the current year have not been invoiced, they should be accrued in time to avoid overpaying taxes;
Clever use of interest expenses of borrowing funds, thus greatly reducing the tax burden of operating income;
Personal assets are leased and sold to law firms for use;
Buying vehicles in the name of a law firm and selling them to individuals of the law firm;
For non-litigation economic business with higher charging level, personal comprehensive income will be changed into operating income;
Make good use of the externalization of internal functions of enterprises and transform them into cooperative relations;
For hiring lawyers, we can also change the mode appropriately and adopt the idea of studio;
Make good use of the preferential policy of deducting 10% value-added tax;
Make good use of travel subsidies, living difficulties subsidies and other tax exemptions.
The organizational form of law firms is generally partnership, but the internal management is much looser. Most law firms still rely on lawyers to earn their own income, or lawyers take most and law firms take a small part.
The approval of the law firm is in the local judicial bureau, which is different from the approval of the company in the market supervision bureau, but its tax payment is generally consistent with that of the company.
The main taxes are
I. value-added tax
With an annual income of more than 5 million, he is a general taxpayer with a tax rate of 6%; Less than 5 million are small-scale taxpayers, and the collection rate is 3% (during the epidemic period 1%). Small-scale taxpayers with quarterly sales of less than 30 points are exempt from VAT (300,000 need to issue an ordinary VAT invoice).
Two, urban construction tax, education surcharge and local education surcharge
As long as there is value-added tax, the above tax will occur. Urban construction tax rates vary from place to place (7%, 5%, 1%). Education surcharge and local education surcharge are 3% and 2% respectively. The above-mentioned tax burden also enjoys a preferential tax policy of halving because of whether the law firm is a small-scale taxpayer and how much income it earns in the current month.
Three. individual income tax
Personal income tax is one of the most important taxes of law firms. Let's talk about it in different situations here.
In addition, the partnership law firm does not involve enterprise income tax; Due to the tax policy, the personal income tax of law firms is not applicable to the approved collection.
Law firms do not pay enterprise income tax, and other taxes and fees are similar to those of ordinary enterprises, so they do not pay enterprise income tax. The law firm is a partnership, has no legal person status and does not pay enterprise income tax.
2, value-added tax, etc. , and the general enterprise. Small-scale taxpayers enjoy the relevant tax benefits of small-scale taxpayers, but ordinary taxpayers follow the provisions of ordinary taxpayers.
3. Taxes and fees are similar to VAT.
4. Other taxes involved, if any, will also be paid, such as the real estate rent of the law firm. In addition to value-added tax, it also involves property tax.
There may be matters needing attention. 1. The partnership law firm has investment and no registered capital. The paid-in investment is not reflected in the two accounting subjects of paid-in capital and capital reserve, and the registered capital does not need to pay stamp duty.
2. The law firm pays dividends on its foreign investment, and the partners pay taxes first.
3. The income of law firm partners operating a law firm is different from the income of shareholders of the company, and belongs to operating income, and they pay individual tax according to the five-level tax rate of operating income.
4. If the law firm is a general taxpayer, because the input tax is relatively small and the tax burden is relatively high, it is impossible to find other ways to issue invoices. If you don't want to be an ordinary taxpayer, then divert your business.
5. The personal income tax of the law firm is approved and collected, which should not be allowed at present. People who have this idea are limited to this idea.
The types of taxes and fees paid by law firms are different with different organizational forms. In reality, there are three main organizational forms of law firms: sole proprietorship, partnership and company. No matter what form, according to the provisions of the tax law, major taxes such as value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, and personal income tax (wages and salaries) are required, but individual proprietorships and partnerships need to pay personal income tax (operating income), and the nature of the company needs to pay corporate income tax.
As for how to pay taxes, it depends on whether the firm is a general taxpayer enterprise or a small-scale taxpayer enterprise. The services provided by the firm need to pay VAT according to the provisions of the VAT Law and the certification consultation in the modern service industry. The general taxpayer's VAT rate is 6%, and the special VAT invoices obtained by enterprises can be deducted according to regulations. At the same time, according to the seventh paragraph of the Announcement of the General Administration of Customs of the Ministry of Finance on Deepening the Reform of Value-added Tax (Announcement No.39 of the General Administration of Customs of the Ministry of Finance +09), after meeting the requirements, you can enjoy the preferential tax of 10%. The income growth rate of small-scale taxpayers is 3%, and the monthly sales do not exceed 654.38+10,000 (the quarterly sales do not exceed 300,000), and there is no need to pay additional taxes, except for special tickets issued by enterprises or tax bureaus.
Individual proprietorship enterprises and partnership enterprises shall pay personal income tax in advance according to the profits during the tax period, and enterprise income tax shall be paid in advance according to the actual profits. According to the current regulations, the business income tax rate is a five-level progressive system, and the actual enterprise income tax rate also has different actual tax rates.
The matters that the firm should pay attention to mainly include that the modern service industry may not be able to apply for approval and collection (the tax bureau of my city has made it clear that such enterprises cannot be approved and collected), that the wages of investors in the form of sole proprietorship enterprises and partnership enterprises cannot be deducted before tax, and that they can be deducted before tax when the income tax is settled according to 60,000/year, and they cannot enjoy the preferential policies stipulated in Article 2 of the Notice on Implementing the Inclusive Tax Relief Policy for Small and Micro Enterprises.
Firm enterprises should decide which organizational form to adopt according to their own actual situation and enjoy the preferential tax policies of the state to the maximum extent.
Most of lawyers' affairs are partnerships, and partnership enterprises pay individual income tax according to the principle of first tax and then tax. Personal income tax shall be paid according to the operating income of the partnership.