Summary of Conclusion
For lawyers who contribute capital, it is suggested to adopt the "dynamic distribution proportion model" for profit distribution and tax calculation, so as to conform to the rule of "distribution according to creation" widely popular in the legal field. For the convenience of tax declaration, some law firms nominally declare taxes by equal distribution, and secretly make secondary distribution, which violates the provisions of the individual income tax law and belongs to false declaration. For this kind of wrong tax return, the partner who pays less tax should bear the responsibility of paying back the tax. Partners who pay more taxes and fail to apply for tax refund within 3 years from the date of tax payment will pay "unjust tax" for nothing.
subject
1
definition of investment lawyer.
the tax law does not directly define the contribution lawyer. According to the Reply of Shanghai Local Taxation Bureau on Individual Income Tax for Additional Investors in Individual Partnership Law Firm (No.8 [22] of Shanghai Local Taxation Bureau), the individual income tax shall be levied accordingly on the basis of the registered partners specified in the Practice License of Law Firm issued by the Municipal Bureau of Justice.
Therefore, the contributing lawyer refers to the registered partner specified in the practice license of the law firm. In many law firms, the "senior partner", "equity partner", "partner" and "director" stamped internally are not registered partners in the judicial administrative department, so they are not investment lawyers in tax law.
2
Individual income tax of funded lawyers
(1) Calculation formula
Funded lawyers obtain part of their distributable profits by multiplying the annual tax profit (accounting profit after tax adjustment) of the law firm by the agreed distribution ratio, which is used as taxable income minus personal deduction. Then, multiply the annual taxable income by the progressive tax rate of 5%-35% of operating income to calculate the annual taxable amount.
taxable income = (income of law firm-tax cost-operating cost of law firm) × distribution ratio-personal deduction in the current year.
Taxable amount = taxable income × applicable tax rate (5%-35%)- Quick deduction
(II) Reporting method
Generally, the personal income tax of the aided lawyer is reported by the law firm, and paid in the name of the aided lawyer at the tax registration place of the law firm according to business income.
Note:
1. When calculating personal income tax, the contributing lawyer cannot determine the taxable income according to the commission ratio agreed by his law firm, but needs to calculate it according to the provisions of the tax law.
2. The lawyer's salary shall not be included in the cost of the law firm.
3. The case-handling expenses of the funded lawyers can only be deducted from the law firm together with other funded lawyers, and cannot be deducted from their taxable income alone! And must be reimbursed with valid documents.
3
Difficulties in calculating and reporting the individual income tax of sponsored lawyers
According to the tax law, the partners of the partnership law firm calculate the individual income tax according to the principle of "tax after tax first".
"pre-distribution" means that the total income of the law firm (including the income generated by partners and commission lawyers and public income) is subtracted from the cost of the law firm to calculate the operating profit, and then the operating profit is multiplied by the distribution ratio agreed by all partners in advance to determine the operating profit distributed by all partners. The "distribution" referred to here is only the distribution on the book, and the amount allocated may be left in the bank account of the law firm and may not actually be paid to the partner account.
"After-tax" means that each partner determines the taxable income tax after deducting personal deduction (annual deduction of 6, yuan, special deduction, special additional deduction, training fee of lawyers association and donation expenses) according to the business profits distributed by himself, and then applies the progressive tax rate of 5%-35% of business income to calculate personal income tax.
Question:
The default profit distribution rule in the tax law is too simple, which does not conform to the actual operation of commission law firms. After all, most commission law firms determine the profit distribution according to the income generated by partners, which is simply "distribution according to creation". However, the amount of income generated by partners cannot be predicted in advance, so it is impossible for all partners of the commission law firm to determine the specific distribution ratio of each partner in advance when formulating the partnership agreement. Therefore, in order to achieve the purpose of "distribution according to innovation", the partnership agreement can only stipulate the calculation formula of the profit distribution ratio of each partner in advance, and then determine the parameters according to the actual income and expenditure situation at the end of the year, and then substitute the parameters into the formula to calculate the distribution ratio of each partner in detail, and finally determine the profits that each partner should share. The profits distributed by each partner in the above manner shall be declared and taxed separately. This profit distribution model is called "dynamic distribution proportion model", which corresponds to "fixed distribution proportion model".
let's intuitively feel this problem through a specific case.
Situation
A law firm has four partners, namely Zhang San, Li Si, Wang Wu and Liu Zhao.
in p>22, the annual income of a law firm is 6.5438+million yuan, including 5 million yuan for Zhang San, 4 million yuan for Li Si, 8, yuan and 2, yuan for Wang Wu.
in p>22, the pre-tax deductible expenses of law firms totaled 2 million yuan, including 8, yuan for Zhang San, 5, yuan for Li Si, 6,543,8 yuan for Wang Wu, 5, yuan for the company and 5, yuan for the company.
The four partners agree to calculate and distribute profits according to their own income minus their own costs, and the costs of the law firm will be shared equally by the four partners.
assuming that value-added tax and additional tax are not considered, and personal deductions such as expense deduction and special deduction are not considered, this paper analyzes how the four partners should calculate the declared tax.
Case analysis
Because all partners in this case did not agree on a fixed profit distribution ratio in advance, they set up a "dynamic distribution ratio model" according to the well-known rules agreed by the lawyer industry and their respective income-generating situation. In this case, the finance of Law Firm A was at a loss when filling out the tax return, and did not know how to fill it out. See the following figure for details:
As can be seen from the above figure, the operating profit of a single partner cannot be directly filled in when filling in the Personal Income Tax Return on Operating Income (Form B). Only by filling in the overall income and cost of the law firm, can the overall profit of the law firm be calculated, and then multiplied by the agreed distribution ratio, can the profit of a single partner be calculated, and then the cashier tax can be calculated. Therefore, how to determine the proportion in this declaration form has become a common financial problem for law firms.
4
Solution
In order to achieve the goal of "distribution according to creation", the author suggests adopting the "dynamic distribution proportion model", as follows:
Step 1: First, summarize the annual income of each partner.
step 2: calculate the operating profit of each partner after deducting value-added tax and cost, and calculate the personal income tax of each partner after deducting personal deduction from the operating profit. (It is reasonable to say that this step can determine each partner's respective declared tax amount, but because the tax filing system must fill in the profit distribution ratio of each partner, it is necessary to calculate the profit distribution ratio according to the following steps.
Step 3: Calculate the total operating profit of the law firm after deducting all costs.
Step 4: Divide the operating profit of each partner by the total operating profit of the law firm, calculate the profit distribution ratio of the current year, and then fill in the individual income tax return of each partner.
step 5: after filling in the distribution proportion of each partner in the individual income tax return, the system will automatically generate the operating profit amount distributed by each partner, which is consistent with the operating profit amount calculated separately in step 2.
let's use a case to explain the above steps one by one.
(1) First, summarize the annual income of each partner.
In this case, Zhang San made a profit of 5 million yuan, Li Si made a profit of 4 million yuan, Wang Wu made a profit of 8, yuan and Liu Zhao made a profit of 2, yuan. The total income of the law firm is 1, yuan.
(2) Calculate the operating profit of each partner from the law firm and calculate personal income tax.
since all partners agree to determine the profits to be distributed according to their respective income-generating conditions, we first calculate each partner's own profits and personal income tax:
1. Zhang San's profits
= 5 million yuan in income-8, yuan in handling cases-654.38+25, yuan to share the public costs.
= 4.75 million yuan
Personal income tax
= 4.75 million yuan× 35%-65,5 yuan
= 1.3675 yuan
2. Li Si's profit
= 4 million yuan income-5, yuan handling expenses-654.38+.
= 3.375 million yuan
Personal income tax
= 3.375 million yuan × 35%-65,5 yuan
= 1.11575 million yuan
3. Wang Wu's profit
= income of 8, yuan-fee expenditure of 6.5438+.5 million yuan.
= 525, yuan
Personal income tax
= 525, yuan × 35%-65,5 yuan
= 118,25 yuan
4. Liu Zhao's profit
= income of 2, yuan-handling fee expenditure of 5, yuan-sharing public expenses of 6,543.8 yuan.
= 25, yuan
Personal income tax
= 25, yuan ×5%
= 1.25 yuan
(3) Calculate the total operating profit of the law firm after deducting all costs and expenses.
Operating profit of the law firm
= 1,-2 million yuan
= 8 million
(4) Divide each partner's operating profit by the total operating profit of the law firm to calculate the profit distribution ratio of the year.
1. The proportion of Zhang San
= 4.75 million yuan ÷ 8 million yuan× 1%
= 59.375%
2. The proportion of Li Si
= 3.375 million yuan ÷ 8 million yuan× 1%
Rmb ÷ 8 million ×1%
=.3125%
(5) After filling in the distribution proportion of each partner in the personal income tax return, the system will automatically generate the amount of operating profit distributed by each partner.
1. Zhang San's operating profit
= 8 million yuan × 5.9375%
= 4.75 million yuan
2. Li Si's profit
= 8 million yuan × 421.875%
= 3.375 million yuan
3. Wang Wu.
5
How to declare violations in practice
In practice, because some law firms don't know how to declare their finances, in order to save trouble, they declare and pay taxes to all partners according to the average distribution method, and then distribute profits among partners privately, and make up for more.
Taking this case as an example, assuming that the finance of law firm A declares and pays taxes to all four partners according to the distribution ratio of 25%, the operating profit of each partner is 2 million yuan (8 million yuan× 25%) and the personal income tax is 6.34 5 yuan (2 million yuan× 35%-65 5 yuan).
(1) Differences between two different declaration methods
In this way, the tax amount declared by each partner will be different from the actual situation:
Zhang San's nominal tax payable is 634,5 yuan, the actual tax payable is 13,67,5 yuan, and the tax underpaid is 726,25 yuan;
Li Si's nominal tax payable is 634,5 yuan, while the actual tax payable is 13,67,5 yuan, and the tax underpaid is 4,812,5 yuan;
The nominal tax payable in Wang Wu is 634 5 yuan, and the actual tax payable is 118,25 yuan, which is 516,25 yuan overpaid;
the nominal tax payable of Liu Zhao is 634,5 yuan, while the actual tax payable is 1,25 yuan, which is 633,25 yuan overpaid;
after calculation, the average tax payment method is 2.538 million yuan, and the actual tax payment method is 2.596 million yuan. The former pays 58, yuan less tax than the latter, mainly because Liu Zhao's taxable income is less than 5, yuan, which makes it impossible to apply the highest tax rate, thus allowing other partners to "borrow the light of Liu Zhao".
(II) Consequences of False Declaration
In this case, Zhang San and Li Si failed to pay taxes due to false declaration, which may be suspected of tax evasion. If the tax authorities deem it as tax evasion, according to the provisions of Article 63 of the Law of People's Republic of China (PRC) on the Administration of Tax Collection, Zhang San and Li Si shall pay the overdue tax, pay the overdue fine and impose a fine of more than 5% and less than five times the tax underpaid.
Personally, I think this kind of behavior of law firm partners should not be easily characterized as tax evasion, but should be characterized as tax evasion according to the second paragraph of Article 52 of the Law of People's Republic of China (PRC) on Tax Collection and Administration. The reasons are as follows:
1. In the aspect of tax declaration, the partners did not conceal income or falsify expenses when reporting the overall financial data of the law firm, but they could not accurately calculate the distribution ratio because they were unfamiliar with the business, so this behavior did not conform to the tax evasion means listed in the tax law;
2. although the taxable income of some partners in the law firm has decreased, the taxable income of other partners has increased. If all partners are calculated according to the highest tax rate, there is no tax underpayment on the whole, indicating that partners have no intention to evade taxes subjectively.
3. One of the objective reasons for the wrong declaration of partners is that the current tax declaration system does not conform to the characteristics of the lawyer industry, which makes it more difficult for lawyer partners to declare, thus increasing the probability of wrong declaration.
As for Wu Wang and Liu Zhao, they have illegally declared overpayment of taxes, which is a wrong declaration. According to the provisions of Article 51 of the People's Republic of China (PRC) Tax Collection and Management Law, you can apply for tax refund within three years.
after the false declaration is discovered by the tax authorities, the law firm should actively communicate with the tax authorities, actively adjust the mistakes under the guidance of the tax authorities, actively pay taxes and apply for tax refund.
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