"Collection of tax planning" planning strategy for the transfer of property of individual proprietorship enterprises

In accordance with the provisions of the " individual proprietorship Enterprise Law ", the investors of individual proprietorship enterprises have unlimited liability for the debts of enterprises .

Because the individual proprietorship Enterprise Investor is a natural person, to the enterprise's investment amount, whether to add the fund or to reduce the fund, to adopt what kind of business way and so on matters all by the investor one person to be the master.

From the view of rights and obligations, the investor and the enterprise are inseparable.

Investors have unlimited liability for the debts of the enterprise, that is, when the assets of the enterprise are not sufficient to settle the due debt, the investor should use all the property of his own to pay off, which in fact connects the enterprise's cooperation with the investor's responsibility.

Because of this, the individual proprietorship law does not specify the minimum limit for investors ' registered capital.

For the sole proprietorship enterprise, the property of the enterprise is the property of the investor, although the individual proprietorship investor has unlimited liability to the enterprise's debt, but the property of the investor and the Enterprise property are still different:

One is the "Individual proprietorship Enterprise Law" expressly stipulates that the investor bids the individual proprietorship enterprise, must declare the capital contribution, this investment property and the investor's other property is different;

Second, enterprises should have a stable and independent capital, which is the need of enterprise production and management;

The third is to distinguish the property of the two, which is advantageous to the calculation of production and operation results.

The individual proprietorship law does not make special demands on the increase or decrease of enterprise funds, which provides the tax planning space for taxpayers by increasing capital or reducing capital to affect tax payment .

Tax Word (2000) 91st "notice" stipulates that

From January 1, 2000 onwards, the individual-owned enterprises according to the "production, management" income collected personal income tax, no longer levy corporate income tax .

Fourth of the notice stipulates that "the total amount of income deducted from each tax year by the individual proprietorship shall be the result of the production and operation of the costs, expenses and losses." Among them, the total income of taxpayers refers to the income of enterprises engaged in production and operation and activities related to production and operation, including goods (products) sales income, operating income, labor service income, project price income, property lease or transfer income, interest income, other business income and operating income. ”

Under this provision, if a sole proprietorship is to lease or transfer the fixed assets of a book, the proceeds obtained will no longer be taxed on the items of "property lease income" or "Property transfer proceeds", but are merged into the taxable income of the enterprise and taxed according to the "Production and Operation income" item.

However, if an investor uses a fixed asset owned by an individual that is not related to the production and operation of an enterprise for external lease or transfer, the proceeds obtained from it shall be separately levied on the individual income tax according to the "Property lease income" or the "Property transfer proceeds" item.

Therefore, if an investor invests the property that can be used for operation into an enterprise (capital increase), or pulls all of its property out of the corporate book (capital Reduction), it can change its property lease, the taxable item of the transfer income and the applicable tax rate, thus achieving the purpose of reducing the tax burden.

This paper illustrates the planning scheme of property leasing and transfer income respectively.

I. Planning of property Lease income

A person-owned enterprises in 2000 to achieve internal production and operation of the income of 60000 yuan, in addition, the fixed asset rental gains 18900 yuan (annual lease income of 20000 yuan, with the related tax 1100 yuan).
Programme I: The property as a corporate property, the lease proceeds into the income of production and operation of the unified tax.
Taxable amount = (60000+18900) x35%-6750=20865.00 (yuan)
option two: The property as the investor's personal property, the lease proceeds are taxed separately according to the "Property lease income" .
"Property Lease Income" Taxable amount =[20000x (1-20%) -1100]x20%=3024 (yuan)
"Production, operating income" taxable amount =60000x35%-6750=14250 (yuan)
Investor Total Taxable Amount =14250+3024=17274 (RMB)
Programme two ratio programme one reduced tax burden: 20865-17274=3591 (yuan)
In practice, if the property has been used as an enterprise property, the investor may convert the Enterprise property into the other property of the individual Investor (hereinafter) by means of a reduced capital.

Ii. planning of Property transfer proceeds

A single-owned enterprise achieved internal production and operation of 100000 Yuan in 2000, in addition, the acquisition of property transfer income of 41700 yuan (real estate original value of 300,000 yuan, has been raised depreciation of 200,000 yuan, the transfer price of 150,000 yuan, the transfer process incurred in taxes 8300 yuan).
programme I: The property as a corporate property, the transfer of income into production, operating income unified tax .
Taxable Amount =141700x35%-6750=42845 (yuan)
Programme II: The property acts as an individual property of the investor and the transfer proceeds are taxed separately as "proceeds of property transfer" .
"Income from transfer of property" taxable amount =41700x20%=8340 (yuan)
"Production and operation" Taxable amount =100000x35%-6750=28250 (yuan)
Investor Total Taxable Amount =28250+8340=36590 (RMB)
Programme two ratio programme one reduced tax burden: 42845-36590=6255 (yuan)

In the above example, if the property transfer income is 60000 yuan, the transfer tax should be 3300 yuan, then the transfer proceeds =60000-(300000-200000) -3300=-43300 (yuan). The taxable amounts calculated by the two schemes are as follows:
Scheme one: Taxable amount = (100000-43300) x35%-6750=13095 (yuan)
Programme II: "Income from transfer of property" taxable amount is zero;
"Production, operating income" taxable amount =100000x35%-6750=28250 (yuan)
Total Investor Taxable Amount =28250+0=28250 (RMB)
Programme two ratio programme one increased tax burden: 28250-13095=15155 (yuan)

It can be seen from the above results that taxpayers can change the applicable tax items and tax rates by increasing capital or reducing capital according to their needs, and changing the taxation of the taxable items.

It should be noted that, as the production and operation of the income of 5%-35% of the five-level excess progressive tax rate , if the above-mentioned enterprises in the internal production, operating income difference, it will produce different results. The above calculation only illustrates one problem: the tax burden of separate or combined calculation is different, the taxpayer can realize the situation according to the expected income, through the calculation of the two schemes, to choose a relatively light tax burden of the scheme, so as to reduce the tax burden.

It should be noted that the national tax letter [2001]84] clearly stated that the amount of income of individual proprietorship enterprises and partnership enterprises will be different. The above calculation only illustrates one problem: the tax burden of separate or combined calculation is different, the taxpayer can realize the situation according to the expected income, through the calculation of the two schemes, to choose a relatively light tax burden of the scheme, so as to reduce the tax burden.

It is important to note that the IRS letter [2001]84] expressly, the interest or dividends, dividends, and non-integration of the individual proprietorship and partnership enterprises in the foreign investment shall not be incorporated into the income of the enterprise, but the income of interest, dividends and dividends obtained by the individual investors should be calculated by the taxable item "interest, dividend and dividend income". pay personal income tax . Therefore, the above-mentioned planning strategy should not be adopted for the interest, dividend and dividend income obtained by taxpayers.

"Collection of tax planning" planning strategy for the transfer of property of individual proprietorship enterprises