I believe that every company and the person in charge of the business will encounter this problem. How to declare the most cost-effective income tax for profit-seeking enterprises? How to avoid paying unnecessary taxes? Let us analyze it for you.
For a profit-making enterprise whose annual net operating income and non-operating income total less than NT$30 million, its annual settlement report is complete, and the net profit rate adjusted by itself according to the law is within the industry standard (about 6%-10%) Between) and above, the tax payable should be reviewed in writing for the declaration case.
Formula : [Income = (net operating income and non-operating income) × profit margin of expanded book review]
Advantages : The chance of being audited by account adjustment is small (about 10%).
Disadvantages :
(1) Those with a large amount of income have considerable tax levies.
(2) When the National Taxation Bureau randomly checks the account books and certificates in accordance with the law, it often approves the additional tax due to incomplete account records, insufficient vouchers, or records that do not conform to the regulations. On the contrary, the amount is much higher than the tax amount that should be paid according to the legal settlement declaration.
When the taxpayer does not meet the requirements for the extended written review and declaration, it can adjust the net interest rate to above the income standard issued by the Ministry of Finance in accordance with the provisions of Article 80 of the "Income Tax Law" when declaring income tax for profit-seeking enterprises. The declared amount shall prevail in calculating the tax payable. However, if the taxation agency finds that the declaration is abnormal or involves concealment, short reporting or omission of income, or the declared income is lower than the income standard, individual investigations may be carried out in accordance with Article 83 of the "Income Tax Law". According to the regulations, the amount of income shall be determined according to the information obtained by him or the profit standard of the same industry.
Formula : [Income = Net Operating Income × Standard Income Rate of Interbank Profit Standard + Non-operating Income - Non-operating Expenses]
Advantages : The declaration procedure is simple, except for major abnormalities, the IRS will not check the accounts.
Disadvantages : The tax is considerable, and the income standard is often higher than the book review rate.
The taxpayer shall record in the accounts according to the actual operating results in detail according to the relevant certificates. However, due to the operating costs, the relevant cost sheets cannot be compiled, or even though they are prepared, they cannot be checked with the relevant account certificates. Therefore, the gross profit recorded in the accounts must be based on " The gross profit rate of profit-seeking enterprises, the income of various industries, the inter-industry profit standard and the book review standard, is adjusted according to the law, and the income is calculated and taxed.
Formula :
[Income = Net Operating Income × Gross Profit Rate of Interbank Profit Standard - Operating Expenses + Non-operating Income - Non-operating Expenditures]
Advantages : There is no need to compile various cost sheets.
Disadvantages : Those with large income have considerable tax levies. Generally speaking, inter-bank profit standard > income standard > enlarged profit margin.
Refers to a profit-seeking enterprise with complete accounting books and documents. According to Article 24 of the "Income Tax Law", the net profit after deducting various costs, losses, and taxes from the total income of the current year shall be the income amount. When the calculation of income involves taxable income and tax-exempt income, the relevant costs, expenses, or losses shall be apportioned reasonably, except for those that can be directly and reasonably clearly attributable and recognized as individual attribution; the apportionment method shall be determined by Determined by the Ministry of Finance. After the profit-seeking enterprise declares, the National Taxation Bureau may review the account books and check and adjust according to the provisions of Article 80 of the "Income Tax Law". Check, when the information provided by the taxpayer is missing or cannot be provided reliably, the National Taxation Bureau has the right to adjust the company's income based on the information obtained or the profit standard of the same industry, and then pay taxes or fines.
Formula : [income = net operating income - operating costs - operating expenses + non-operating income - non-operating expenses]
Advantages : It can be verified, and the loss means that there is no tax.
Disadvantages : The account certificates must be fully prepared for investigation by the tax collection agency.
The reporting method is roughly the same as that of auditing, except that before declaring the profit-seeking enterprise income tax, the accountant first adjusts the income outside the account in accordance with the "Income Tax Law", "Profit-seeking Enterprise Income Tax Audit Standards" and other relevant laws and regulations to generate taxable income , and issue a visa declaration review report, and report to the tax collection agency.
Formula : [income = net operating income - operating costs - operating expenses + non-operating income - non-operating expenses]
Advantages :
(1) With the professional accountant, make good use of legal tax-saving channels to avoid paying unreasonable tax burdens.
(2) Higher communication expenses can be listed to reduce the tax burden (Article 37 of the Income Tax Law).
(3) After deducting the approved losses of the previous 10 years, the tax can be assessed and paid by itself (Article 39 of the Income Tax Law).
(4) Losses in the next year can be deducted from the undistributed earnings of the current year to reduce the tax burden (Article 66-9 of the Income Tax Law).
(5) The taxable income is based on the original declared amount to calculate the undistributed surplus. Therefore, the adjusted taxable income after the random inspection by the National Taxation Bureau will not be subject to an additional 10% undistributed surplus tax (Article 66-9 of the Income Tax Law ).
(6) It is possible to apply for the issuance of unified invoices on a monthly basis (Article 15-1 of the Measures for the Use of Uniform Invoices).
(7) The National Taxation Bureau first finds an accountant for tax inspection, and the pressure on the company's accounting department is relatively low.
Disadvantages : Visa fees must be paid.
Therefore, if the enterprise is small in scale, low in turnover, and incomplete in account certificates, it can adopt an expanded written review report; if the enterprise is large in scale, high in turnover, and complete in account certificates, it will be determined by the profitability of the enterprise, and the one with the higher net profit rate will take the income. It is determined by the amount standard or cost path; those with a lower net profit ratio are more likely to adopt the audited account declaration. If the business has a turnover of more than NT$30 million and needs to offset profits and losses, it is recommended to apply for an accountant visa, which may save a lot of money with a small amount of money.
Reference materials: Sources of data: relevant laws and regulations, the National Taxation Bureau, Internet information and joint accountants of JingxunThere are services all over the country. Jingxun United Accounting Firms start-up companies set up bookkeeping, tax declaration, accounting, tax saving, capital visa fees, Taipei, Taoyuan, Taichung, Yunlin, Tainan
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