The way to avoid taxes in studios is to register a sole proprietorship company first, mostly in the name of studios, and the business scope is mainly performing arts services.
When a star signs an agency contract with a producer or producer, it can be done in the name of the company, so that the star's labor remuneration becomes the company's income. As we know, personal labor remuneration is levied according to personal income tax rules, which can reach up to 45%, while corporate income tax is much lower, and there are many input taxes that can be deducted.
In contrast, a hundred million can save tens of millions!
And because there are other preferential tax policies in various regions, although stars usually live in Beijing and Shanghai, they can register companies all over the country, such as Horgos in the past and Hainan Island now. Because the procedures of a sole proprietorship company are relatively simple, it is entirely possible to cancel the company and register another company in other places after the local preferential tax policies are over.
Although this method exploits the loopholes of policies and laws, what if it is not followed? Yin-yang contract? And then what? Installment payment? Combined, it is actually legal.
For example, star pay 1 billion. After signing the contract at one time, if he pays taxes according to the standard of personal income tax, he may need 45 million yuan, while the studio may only pay 30 million yuan, and the studio pays corporate income tax. This is no problem. However, if one billion yuan is divided into several parts and flows into studios or other affiliated companies in different names, it may only need to pay 20 million yuan, which is tax evasion.
Generally speaking, it is ok to avoid taxes reasonably, but it is illegal to make excuses, pay off accounts many times, or even sign a contract with Yin and Yang, which belongs to the theory of tax evasion.
It stands to reason that stars earn more than 2 million a day in filming. What's wrong with paying more taxes? Only enjoy the rights but not fulfill the obligations, such stars should be severely cracked down and completely banned!