I. How to declare the income tax of the general partnership?
Income from production, operation and other income of a partnership enterprise shall be paid separately by the partners in accordance with the relevant tax regulations of the state.
If you are a natural person partner, you don't have to pay personal income tax according to the income from wages and salaries. You only need to pay personal income tax in advance on a monthly or quarterly basis according to the income from the production and operation of individual industrial and commercial households. Individual income tax paid by investors shall be levied by auditing accounts, which shall be calculated on an annual basis and paid in advance quarterly. Investors shall pay in advance within 15 days after the end of each quarter, and submit the Annual (Quarterly) Declaration Form for Collecting Individual Income Tax of Investors in Sole proprietorship and Partnership Enterprises through Auditing to the competent tax authorities. Settle the accounts within 3 months after the end of the year, and submit the Annual (Quarterly) Return for Collecting Individual Income Tax of Investors in Sole proprietorship Enterprises and Partnership Enterprises through Audit to the competent tax authorities, and attach the annual final accounting Statement and the prepaid individual income tax payment certificate.
Second, the partnership enterprise income tax declaration process
(1) Time limit for filing enterprise income tax
Article 54 of the Enterprise Income Tax Law, which came into effect on 1 month 1 day in 2008, stipulates that:
1, enterprise income tax shall be paid in advance by month or quarter.
2. An enterprise shall, within 15 days from the end of the month or quarter, submit a tax return for prepaid enterprise income tax to the tax authorities, regardless of profit or loss, and pay taxes in advance.
3. The enterprise shall, within five months from the end of the year, submit the annual enterprise income tax return to the tax authorities, and make final settlement and settle the tax refund payable.
4. When submitting the enterprise income tax return, the enterprise shall attach the financial accounting report and other relevant materials in accordance with the regulations.
5. If it is really difficult for taxpayers to declare within the prescribed reporting period, they may report to the competent tax authorities for approval and postpone the declaration.
Three, the main problems of China's partnership income tax system
Article 6 of China's new "Partnership Enterprise Law" stipulates: income from production and operation and other income of partnership enterprises. According to the relevant tax regulations of the state, the income tax shall be paid by the partners respectively. This special provision on partnership income tax has ended the long-term absence of basic laws on partnership income tax system in China. While expanding the types of partnership enterprises, the income tax system of partnership enterprises has been integrated and unified under the framework of the new law. According to the new Partnership Enterprise Law, the income tax system of partnership enterprises has thoroughly implemented the principle of "flowing through". Partnership enterprises only play the role of "conduit" in taxation, and they cannot be the main taxpayers themselves, but the partners are the real taxpayers. Therefore, the partnership enterprise is regarded as a "transparent entity", and its operating income should be distributed to all partners, who should pay income tax according to their own conditions. Individual partners pay individual income tax according to the income of individual industrial and commercial households, and corporate partners pay enterprise income tax according to the Enterprise Income Tax Law. However, at present, China has not yet promulgated the detailed rules for the implementation of the income tax for partnership enterprises that are compatible with the provisions of the new Partnership Enterprise Law, and the legal basis for the practical operation is still the Provisions on Individual Income Tax for sole proprietorship enterprises and partnership enterprise investors promulgated by State Taxation Administration of The People's Republic of China in 2000 (hereinafter referred to as the Provisions). Although the system defined in the Regulations also implements the principle of "flowing through" and stipulates that partners rather than partnership enterprises are the taxpayers of income tax, many of its contents have great defects, and some of them are completely outdated.
First of all, the tax payers identified in the Regulations are single and their positioning is vague. The Regulations have inherent defects in defining the taxpayer of partnership income tax. As can be seen from the name of the Regulations, the taxpayer of partnership enterprise income tax can only be the individual partner, who pays personal income tax. With the confirmation of limited partnership in the new "Partnership Enterprise Law", the legal status of corporate partners has been determined, and it is bound to be widely used in China. Therefore, according to the content of the Regulations, there is no corresponding law to regulate the income tax of legal person partners, which is not within the scope of taxpayers of the current partnership income tax system. In addition, in the current income tax system of partnership enterprises, partnership enterprises are only regarded as "conduits" for conducting "income, losses and expenses", and partnership enterprises themselves do not bear corresponding tax obligations and responsibilities, which leads to serious tax evasion and inefficiency in the management of partnership enterprise income tax collection.
Secondly, although the determination of the income tax base of the current partnership income tax system is reasonable. However, there is still a big tax loophole: according to the provisions of the Regulations, the partnership enterprise takes the balance of the total income of each tax year after deducting costs, expenses and losses as its production and operation income, and then determines the taxable income (tax base) of each partner according to the distribution ratio agreed in the partnership agreement. This method of determining the tax base by calculating the net income first and then distributing it to the partners can avoid complicated accounting among the partners. It is reasonable to determine the gains and losses of each partner. However, this method of determining the tax base has a fatal flaw, that is, the distribution of income cost does not closely combine the basic value of property rights of partners in the partnership with the actual business activities, especially the distribution of losses, which may exceed the basic value of property rights of partners in the partnership. This practice of deducting all losses indiscriminately will eventually lead to the loss of taxes.
Thirdly, there are no clear and specific anti-tax avoidance rules and measures in China's current income tax system for partnership enterprises. The only relevant content is that the partnership agreement stipulated in Article 33 of the new Partnership Law shall not stipulate that all profits shall be distributed to some partners or some partners shall bear all losses, and the related transactions of partnership enterprises stipulated in Article 1l of the Regulations shall be restricted and adjusted in accordance with the Law on Tax Collection and Administration. The former can effectively prevent the use of "special distribution" to regulate the tax obligations of some partners, while the latter is the application of the anti-legacy tax rules of general related party transactions in partnership income tax. However, the current income tax system of partnership enterprises in China is still powerless to deal with all kinds of behaviors that may occur in the market that use partnership enterprises as tax avoidance tools.
The above is a detailed introduction to the relevant knowledge about how to declare the income tax of the general partnership. Therefore, the income from production and operation and other income of the partnership shall be paid by the partners respectively according to the relevant tax regulations of the state. If you have any other legal questions, please feel free to consult. We will have professional lawyers to answer your questions.