Learn about the public-to-private tax planning plan and settle in the approved collection park (click below to apply).
In the context of the fourth phase of the Golden Tax, corporate tax planning is particularly important. As one of the important ways of enterprise capital flow, the rationality and compliance of public-to-private conversion have attracted much attention. This article will combine the approved parks to carry out tax planning for public to private conversion, and provide legal and reasonable solutions for enterprises.
Approved parks refer to industrial parks that have been approved by relevant state departments and enjoy specific preferential tax policies. In the park, enterprises can enjoy preferential policies such as tax exemption and tax refund. The use of approved parks for tax planning will help enterprises reduce their tax burden and improve economic benefits.
Public-to-private tax planning strategy
Establishment of a sole proprietorship: Set up a sole proprietorship enterprise in the approved park, transfer part of the profits to the sole proprietorship account in the form of service fees, consulting fees, etc., and then distribute dividends through the sole proprietorship account. Since sole proprietorship enterprises enjoy preferential tax policies, they can effectively reduce their tax burden.
Use the approved collection policy: Establish a sole proprietorship enterprise or partnership enterprise in the approved park to enjoy the approved collection policy. According to the actual situation of the enterprise, the profits are verified according to a certain standard, and then the tax is levied at a lower tax rate. This will reduce the income tax burden.
Rational use of individual industrial and commercial household policy: set up individual industrial and commercial households in the approved park, and outsource part of the business to individual industrial and commercial households. Individually-owned businesses enjoy preferential tax policies, which can effectively reduce the tax burden. At the same time, individual industrial and commercial households will transfer part of their profits to individuals in the form of labor fees and service fees, so as to realize the reasonable circulation of public to private.
Optimize the structure of wages and benefits: Enterprises can convert part of their wages and bonuses into benefits, such as purchasing commercial insurance for employees and providing free lunches. These welfare expenses can be paid before the corporate income tax, reducing the corporate income tax burden. At the same time, the personal income tax burden of employees will also be reduced accordingly.
Reasonable planning of equity incentives: Enterprises can use equity incentive plans, such as options, restrictions, etc., to convert part of the profits into employees' personal income. Equity incentive plans can reduce the income tax burden of enterprises and motivate employees.
Reasonable use of related-party transactions: Enterprises can transfer part of their profits to related party enterprises through related-party transactions, and then the related party enterprises will transfer the profits back to their personal accounts in the form of dividends and other means. Related-party transactions must comply with the arm's length principle to avoid adjustment by the tax authorities.
Reasonable planning of individual income tax: Enterprises can plan individual income tax for employees, and reduce the personal income tax burden of employees by issuing year-end bonuses and employee stock ownership plans. At the same time, the individual income tax burden can also be optimized by reasonably arranging the salary and welfare structure of employees.
In the context of the fourth phase of the Golden Tax, enterprises should pay attention to the tax planning of public to private conversion. By combining the preferential policies of the approved parks, enterprises can adopt a variety of strategies for reasonable planning. However, during the planning process, companies need to pay attention to changes in tax regulations and relevant regulations of the tax authorities to ensure compliance. At the same time, strengthen internal tax management, improve tax risk awareness, and prevent potential risks.