It is not a good phenomenon that there is a large amount of undistributed profits on the accounts of enterprises, so how can the undistributed profits be digested in order to pay less taxes?
I propose a few ideas for your reference:
If it is a real undistributed profit, it is recommended to pay cash dividends to the shareholders of the legal person, that is, cash dividends. For corporate shareholders, cash dividends are resident enterprises and can enjoy the preferential treatment of enterprise income tax exemption.
If it is a natural person shareholder, you need to pay 20% dividend tax, and the tax burden is relatively high, and we also have several ideas for reference
1. Take stock of the company's main assets, especially accounts receivable, and there is indeed evidence to prove that our money is not good, so we can directly deal with bad debts, so that the undistributed profits will be reduced.
2. Take stock of the annual profit and loss, see if we have any previous costs or expenses that have not been omitted, and if there is, make a provision and make an adjustment to the profit and loss of the previous year, so that the undistributed profit will be reduced.
3. Take stock of investment losses and find a company to invest in, after a period of time the company has lost money and went bankrupt, so that your company has an additional investment loss, but this method needs to be carefully laid out and planned in advance.
4. In the case of considering the comprehensive tax burden, pay more wages to natural person shareholders, and the seven-level excess progressive tax rate of wages and salaries personal income tax rate is 3%-45%, and control the overall tax burden within 20%, such as paying 300,000 wages to the boss and 360,000 year-end bonuses at the end of the year (because the year-end bonuses choose to be taxed separately), which will be more cost-effective than directly issuing cash dividends.
On the topic of the risk of excessive undistributed profits of enterprises and how to digest them, we will talk to you here, we must combine the actual situation of our own enterprises to operate, remember not to copy rigidly! Finance and taxation are no trivial matters, and it is recommended to find a professional to deal with them.