First of all, for an entrepreneur, for a business to earn more profit is the core purpose, here we look through a case, if this company set up a branch and assuming the establishment of subsidiaries, how much corporate income tax should be paid in both cases.
So suppose A is a clothing company that has been in business for many years, and he intends to open stores in many cities in 2021, tentatively opening twenty, and since they are all newly established, each of these branches will not make more than a million dollars in profit.
01
Assuming the opening of the branch
Because the branch in the calculation of the tax is aggregated to pay the tax, the aggregation of the profit appears to be a lot, which exceeds the standards of the small and micro-enterprises, and can not enjoy the tax incentives, you need to pay the tax in accordance with the twenty-five percent, that is, about five million.
02
Assuming the opening of subsidiaries
Because each subsidiary is a separate tax registration, so each subsidiary from the number of personnel or income are in line with the standards of small and micro-enterprises, in accordance with five percent of the tax, after calculating that it is about one million, before and after the tax savings of about four million.
So from the tax savings alone, the establishment of a subsidiary is more appropriate, such a company also needs to start from the practical point of view, to learn more about the difference between branch subsidiaries and operating methods.
03
Case Study
Jinan Seafood Hotel Catering Company is a well-known enterprise, 2021 is ready to open 20 branches in other cities, due to the fact that they are all newly established, the initial budget of these 20 stores less than 1 million yuan each profit.
May I ask: the opening of the 20 outlets is the establishment of a branch or subsidiary more tax-efficient?
Answer:
1, if you set up a branch, because the enterprise income tax needs to be aggregated tax, aggregated more than the small micro-profit enterprise standard, can not enjoy the small micro-enterprise tax incentives, you need to pay 25% of the enterprise income tax.
20 stores total enterprise income tax = 20 * 100 * 25% = 5 million yuan?
2. If you set up a subsidiary, since each store meets the criteria for small and micro-enterprises whether in terms of the number of personnel, total assets or taxable income, you can enjoy the small and micro-enterprise tax incentives, and you need to pay the enterprise income tax in accordance with the 5% tax burden.
20 stores total enterprise income tax = 20 * 100 * 5% = 1 million yuan
Tax savings = 500 - 1 = 4 million yuan
Reminder a
1, branch offices do not enjoy the small micro-profit enterprise preferential policies alone, for the branch, should be incorporated into the head office to aggregate the payment of enterprise income tax, the aggregated data, if it meets the conditions of the If the aggregated data meets the conditions of small and micro-profit enterprises, you can enjoy the preferential policies for small and micro-profit enterprises as a whole.
2. If the branch is not integrated into the total organization to pay tax, and choose to pay tax separately according to independent taxpayers, it can not enjoy the preferential policies of small and micro-enterprises, and can only be declared in accordance with the basic tax rate of 25%.
3, if the head office and all the branches together, such as the combined annual taxable income, the number of employees, the total assets of the indicators in line with the provisions of the small micro-profit enterprises can enjoy income tax incentives. The company's main goal is to provide the best possible service to its customers, and the company's goal is to provide the best possible service to its customers.
Reminder 2
What kind of filing information does a taxpayer need to submit?
1. The head office should report the information of all its second-level and lower branches to the competent tax authorities in its location for filing, including the name, level, address, zip code, taxpayer identification number of the branch and the name, address and zip code of the competent tax authority for enterprise income tax.
2. Branches should report the information of their head office, superior branches and subordinate branches to the competent tax authorities in their location for the record, including the name of the head office, superior branches and subordinate branches, level, address, zip code, taxpayer identification number and the name, address and zip code of the competent tax authorities for enterprise income tax.
Reminder 3
Branches do not need to calculate the taxable amount on their own, nor do they need to make adjustments to tax matters when filing annual tax returns during the remittance process, but only need to make up for or refund the tax locally based on the paid tax calculated and distributed by the head office.
Starting from the second quarter of 2018, branches are not required to fill in the "Enterprise Income Tax Aggregate Branch Income Tax Allocation Table" when filing the enterprise income tax return, and are only required to fill in the main table, line 20, "Branch's current apportionment ratio" and line 21, "Branch's current apportionment". The amount of income tax to be paid (refunded) by the branches in the current period".
The head office should calculate the proportion of income tax to be apportioned to each branch according to three factors, namely, the operating income of the branch, the remuneration of the employees and the total assets of the branch in the previous year, and the weights of the three factors are 0.35, 0.35, 0.30, respectively.
The specific formula for calculating the proportion of income tax to be apportioned to a certain branch is as follows: the proportion of apportionment for a certain branch = (operating income of the branch ÷ operating income of the branches) Revenue ÷ sum of operating revenue of each branch) × 0.35 + (the branch's employee compensation ÷ sum of employee compensation of each branch) × 0.35 + (the branch's total assets ÷ sum of each branch's total assets) × 0.30.
Excerpted from the WeChat 'Construction Industry Reform and Adjustment' micro-signal 2021< /p>