Living expenses belong to personal income tax and income from labor remuneration, and the tax rate is as follows:
Above, the minimum living expenses are basically 20% personal income tax, which really hurts people. Many intermediaries require sellers or buyers to bear a tax, and they only accept a fixed amount of net income. This problem is unavoidable for many companies.
For large room rates, experienced companies generally make some tax preparations. The common practice is to set up consulting individual enterprises or studios, register in places with preferential tax (all kinds of economic development zones generally have preferential tax), and make full use of preferential tax, so that the comprehensive tax rate can be 0.5%-6.5%, far lower than the individual tax rate of 20%.
Legal basis: Civil Code of People's Republic of China (PRC).
Article 961 An intermediary contract is a contract in which the intermediary reports to the client the opportunity to conclude a contract or provides media services for concluding a contract, and the client pays the remuneration.
Article 962 The broker shall truthfully report to the client the matters related to the conclusion of the contract.
If the broker intentionally conceals important facts related to the conclusion of the contract or provides false information, which harms the interests of the client, he shall not ask for payment of remuneration and shall be liable for compensation.