So, what are the advantages of tax planning for sole proprietorship enterprises? What problems do such companies pay special attention to in tax planning? Let us have a practical grasp.
1, Advantages of tax planning of sole proprietorship enterprises
Regarding the benefits of tax planning to such companies, the main points are as follows:
(1) It is very easy and simple to apply for a sole proprietorship enterprise. Compared with limited liability companies and other types of companies, sole proprietorship enterprises have simpler procedures in registration application and account cancellation, and the relevant departments have more extensive regulations on their internal control management, so they are more suitable for entrepreneurs to join in business.
(2) A sole proprietorship enterprise has no income tax. In daily life, compared with other types of enterprises, a sole proprietorship enterprise needs to pay only one tax instead of income tax and value-added tax. Therefore, when the company's profit is too low, the sole proprietorship enterprise can enjoy a lower income tax rate, so its tax burden is lighter.
(3) The production and operation of a sole proprietorship enterprise is convenient at ordinary times, and the preparation can be carried out by hanging a certificate when necessary. Generally speaking, in this way, a wholly-owned enterprise can register the theme activities of enterprise safety production to scientific research institutions or civil affairs departments, so as to benefit the company and enjoy relevant tax policies.
(4) Distribute profits and reduce the collection rate. Now sole proprietorship enterprises adopt progressive tax rate, that is, the greater the profit, the higher the levy rate. Therefore, for such companies, it is the top priority of tax planning for such companies to diversify profits and let personal income tax fall into a low collection rate.