2. The tax-saving planning method of mutual conversion between wage income and labor remuneration, because the income from wages and salaries is subject to the nine-level excessive progressive tax rate of 5% to 45%; The income from labor remuneration is subject to the proportional tax rate of 20%, and if the one-time income is abnormally high, it can be levied at an additional rate. According to the analysis of individual tax regulations, labor remuneration is actually equivalent to the application of excessive progressive tax rates of 20%, 30% and 40%.
It can be seen that the same amount of wages, salary income and labor remuneration income are subject to different tax rates, and they all realize excessive progressive tax rates. In some cases, wages, salary income and labor remuneration income are separated, while in some cases, they will save taxes, so it is possible to plan them. In practice, it is beneficial to save tax revenue to separate them in most cases. The key is to make a good plan and sign a good contract before determining the income.
3. How to save tax on advertising expenses?
Regulations on the Implementation of Enterprise Law
Article 44 stipulates that, unless otherwise stipulated by the finance and competent department of the State Council, the eligible and business publicity expenses incurred by an enterprise shall be deducted if they do not exceed 15% of the current year's (operating) income; The excess shall be allowed to be carried forward and deducted in future years. State Taxation Administration of The People's Republic of China's "Pre-tax Deduction Policy for Advertising Fees and Business Promotion Fees in Some Industries" ([2009] No.72) stipulates that from 2008 1 month 1 day to 20 10/year1February 3 1 day, cosmetics manufacturing will be prohibited. The excess shall be allowed to be carried forward and deducted in future tax years. Tobacco advertising expenses and business promotion expenses of tobacco enterprises shall not be deducted when calculating taxable income.
It can be seen that at present, the pre-tax deduction policies of advertising expenses in different industries are inconsistent. Some industries are deducted at the rate of no more than sales (business) income 15% in that year, some industries are deducted at the rate of no more than 30% in that year, and some industries are not allowed to deduct before tax.
case analysis
Profit A Company is a production and operation enterprise, and the advertising expenses incurred in its industry are not allowed to be deducted before tax according to the regulations. The company is a general taxpayer, and the applicable enterprise income tax rate is 25%, and it has not enjoyed the preferential enterprise income tax policy. Although advertising expenses can't be deducted before tax, in order to continuously expand market share, Company A still has to invest a considerable amount of advertising expenses in corporate image promotion every year. Taking 2009 as an example, the budget of that year is expected to invest 60 million yuan in advertising expenses. Since it cannot be deducted before tax, the income tax payable will be increased by 6000× 25% =15 million yuan.
In this regard, is there any room for enterprises to reduce the cost of advertising expenses? If the production and operation processes are analyzed, the following planning ideas can be reasonably and legally selected:
1. Consider changing the promotion by entrusting others to promotion. A company implements the strategy of one product and one policy, adopts terminal marketing strategy for new products and new regional development, and mainly relies on personnel to directly promote products to retailers. Before 2008, limited by the pre-tax deduction policy of taxable wages, Company A entrusted an advertising company to conduct door-to-door publicity in order to avoid the tax increase of taxable wages. After the implementation of the new Enterprise Income Tax Law, some employees may be considered for promotion. If we plan to open up a new regional market, we need to arrange 30 people to go door-to-door for 6 months while paying media advertising fees and providing physical promotional items. If the monthly salary per employee is 2,000 yuan, the total cost is 6× 30× 2000 = 360,000 yuan, and the social insurance fee and other expenses add up to 400,000 yuan. If you entrust an advertising company to promote sales, it is assumed that you also need to pay 400,000 yuan for promotion. Since 2008 1 month 1 day, the advertising expenses incurred cannot be deducted before tax. If we continue to entrust an advertising company to operate, the taxable income will be increased by 400,000 yuan, and the corresponding income tax payable will be 400,000× 25% =100,000 yuan. In contrast, it is better to recruit employees for promotion. However, when choosing marketing strategies, enterprises should not only consider tax factors, but also consider them from many aspects, such as the relevant provisions of the Labor Contract Law and so on, and make a comprehensive comparison.
2. Some suppliers can be considered for advertising. In order to reduce the manufacturing cost of products, Company A invested and controlled some diversified enterprises as raw material suppliers. These diversified enterprises invested by Company A have good operating efficiency, and there are profits to be distributed every year. Moreover, the main products of Company A are registered as the same trademark as those of these diversified enterprises, but they involve different industries, and the related expenses of trademark use are also reasonably shared. In previous years, Company A also highlighted its flagship brand to promote its corporate image. Based on this, we can use these diversified enterprises to promote the same trademark to achieve the purpose of promoting its flagship brand to a certain extent.
The amount of advertising expenses invested by these diversified enterprises should be considered in terms of annual operating income and realized profits, which should not exceed the pre-tax deduction limit and try not to generate losses. In 2009, for example, advertising expenses of 20 million yuan can be fully deducted before tax, and there will be no loss. The specific comparison is as follows:
(1) Company A carries out advertising. The advertising expenses paid by Company A cannot be deducted before tax, and the taxable income is increased by 20 million yuan, and the corresponding income tax payable is 2000× 25% = 5 million yuan. If these diversified enterprises are used for advertising and deducted in full before tax, from the perspective of Company A and its diversified enterprises as a whole, the income tax will be reduced by 2000 × 25% = 5 million yuan.
(2) The supplier carries out advertising. The Enterprise Income Tax Law stipulates that dividends, bonuses and other equity investment income between qualified resident enterprises are income. Company A paid 20 million yuan in advertising expenses, but the impact on net profit was 20 million yuan because it could not be deducted before tax. If these diversified enterprises pay 20 million yuan of advertising expenses, which can be deducted before tax, the impact on net profit is 2000× (1-25%) =15 million yuan, and the profits returned from these diversified enterprises are tax-free income. If Company A and these diversified enterprises are considered as a whole, the advertising expenses paid by these diversified enterprises will affect the net profit by 5 million yuan less.
After the above comparison, it can be seen that it is beneficial for suppliers to carry out advertising. However, in addition to the one-man company invested by Company A, other types of companies should take into account the rights and interests of other shareholders. And it is necessary to analyze and evaluate the advertising effect of this way in advance.
It is not advisable to invest in setting up an agency. Some employees of Company A think that the advertising expenses incurred by the company's industry are not allowed to be deducted before tax, and the agency industry policy is different, so it is not advisable to consider setting up an agency company to conduct advertising. According to Item 2 of Article 1 of the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on the Pre-tax Deduction Policy for Enterprise Handling Fees and Commission Expenses (Caishui [2009] No.29), other enterprises shall calculate the limit at 5% of the income confirmed in the service agreement or contract signed with intermediary service institutions or individuals with legal business qualifications (excluding both parties to the transaction and their employees, agents and representatives, etc.).
If Company A invests in setting up a wholly-owned agency, it will be responsible for the agency of raw materials. Based on the annual agency purchase of 200 million yuan, the agency income is 200,000× 5% =100 million yuan according to the 5% handling fee, and the limit of advertising expenses that can be charged before tax is10000×15% =15 million yuan, corresponding to The agency fee shall be levied at 5%, and the urban construction tax and education surcharge shall be levied at 7% and 3% of the business tax respectively (excluding, etc.), so the business tax and urban construction tax and education surcharge shall be paid10000× 5 %× [1+(7%+3%)] = 5.5 million yuan, and the impact on the net profit will be 5.5 million yuan.
It can be seen from comparison that advertising by agency companies can be deducted before tax, which can reduce income tax by 3.75 million yuan and increase net profit by 3.75 million yuan. However, because the agency fee of the agency company has to pay business tax and additional taxes of 5.5 million yuan, and the net profit has to be reduced by 4125,000 yuan, the total net profit will be reduced by 4 12.5-375 = 375,000 yuan, so it is not advisable to set up an agency company.