March Yang Contract

-Duplicate Contracts-

It is good for a while but not always good

What is a Yin-Yang Contract?

The parties to a contract sign two or more contracts with different contents regarding the same matter. One yin contract is internal, with a larger amount, and reflects the true transaction price of both parties; the other yin contract is external, with a smaller amount, used for filing declarations and evading tax payments. How is the law defined?

As for the identification of yin and yang contracts, the court generally will not directly determine whether the yang contract is valid or the yin contract is valid, but will determine the specific terms of the contract. If the terms in the yang contract, If it harms the national interest, then the clause is invalid. For example: the buyer and seller of a house sign a "yin-yang contract" to evade taxes, and use a "yang contract" with an inflated price to transfer property rights, which harms the national interest, and the corresponding price clauses should be deemed invalid.

Common scenarios in the entertainment industry, film and television fields

The real salary for a movie is 30 million yuan. Considering that personal income tax is relatively high, stars split their contracts and signed one in order to evade personal income tax. An individual declares 5 million yuan to pay taxes, and a studio sign amounts to 25 million yuan. Corporate income tax is taxed according to profits, and the tax rate is lower than personal income tax. You can pay a lot less tax, and even launder such things as investments and related transactions at the company level. , no tax is required after all deductions are made.

Construction engineering field, second-hand house buying and selling field

In second-hand house transactions, the negative contract is the real price and terms of the buyer and seller. Yang contracts may have several copies prepared for different purposes. For example, if a contract with a lower house price is handed over to the real estate trading center for transfer, you can pay less stamp duty. Contracts with higher house prices are submitted to banks to apply for more loans.

The Supreme People's Court of the People's Republic of China, the State Administration of Taxation, etc. have intensified their efforts to crack down on yin and yang contracts in recent years. With the digitization and unified improvement of the systems of various departments, the opportunities to take advantage of loopholes and take shortcuts will gradually decrease.