October is the month for individual income tax declarations on the production and operation income of law firms, and the big guys and their peers are discussing the issue of taxable income of law firms.
First, recently Mr. Barthes threw out an interesting in-depth discussion on the taxable income of law firms:
Suppose three lawyers jointly set up a law firm, one of which is Zhang San, a lawyer who is responsible for the daily affairs of the law firm, and the law firm pays Zhang San a fixed payment of 100,000 yuan, regardless of whether the law firm has profits or not, the three contributing lawyers agree on an equal distribution of profits (profits and losses).
Scenario 1: If the operating income of the law firm in 2020 is 1 million yuan, Zhang San's salary is 100,000 yuan, and other expenses are 0, the three contributing lawyers each receive 300,000 yuan, the taxable income of the law firm is 1 million yuan, and the taxable income of the three lawyers is divided according to the profit division ratio, is it appropriate?
Scenario 2: If the law firm's operating income in 2020 is 1 million yuan, Zhang San's salary is 100,000 yuan, other expenses are 900,000 yuan, the profits of the three people are 0, the taxable income is 100,000 yuan, and the three lawyers are evenly distributed, is it fair?
Scenario 3: If the law firm's operating income in 2020 is 1 million yuan, Zhang San's salary is 100,000 yuan, other expenses are 1 million yuan, profit is -100,000 yuan, and the loss of the three lawyers is -33,300 yuan on average, is it fair? Taxable income 0, the three partners are divided equally, does the inland revenue department agree?
So I now literally calculate the taxable income of the contributing lawyers in scenarios 1, 2 and 3 in accordance with the relevant tax laws of the contributing partners, while assuming that the total special deductions for each lawyer partner are 18,000 yuan and the special additional deductions are 36,000 yuan:
The taxable income of each contributing lawyer in case 1: Zhang San's taxable income is 40 (10 + 30) million yuan, and the taxable income of the other two contributing lawyers = 300,000 yuan.
The taxable income of each contributing lawyer in Case 2: Zhang San's taxable income is 100,000 yuan, and the taxable income of the other two contributing lawyers is 0 yuan.
The taxable income of each contributing lawyer in Situation 3: Zhang San's taxable income is 6.37 (10-10/3) yuan, and the taxable income of the other two contributing lawyers is 0 yuan.
So now we are calculating through the [Personal Income Tax Business Income Tax Return (Form B)], in the three cases, what is the taxable income corresponding to the three contributing lawyers?
In case 1, the corresponding income, cost fees, salary and distribution ratio of the partnership lawyer are filled in the [Individual Income Tax Business Income Tax Return (Form B)], as shown in the following figure, the taxable income of the three partnership lawyers is calculated:
Taxable income per partner = 100 * 33.33% = 333,300 yuan,
Taxable income = 33.33-6-1.8-3.6 = 219,300 yuan,
The amount of personal income tax payable = 21.93 * 20% - 1.05 = 33,360 yuan
Obviously, there is a difference with the previous calculation of Zhang San's taxable income of 400,000 yuan and the taxable income of the other two lawyers of 300,000 yuan, and this difference stems from the tax increase of Zhang San's salary of 100,000 yuan.
The income, cost fee, partner's salary, and distribution ratio corresponding to scenario 2 are filled in the [Individual Income Tax Business Income Tax Return (Form B)], as shown in the following figure, the taxable income of the three partners is calculated:
Taxable income per partner = 10 * 33.33% = 33,300 yuan,
After deducting the fee of 60,000 yuan
Taxable income = 0 yuan,
The amount of personal income tax payable = 0 yuan
Obviously, there is a difference with the previous calculation of Zhang San's taxable income of 100,000 yuan and the taxable income of the other two lawyers of 0 yuan, and this difference also stems from the tax increase of Zhang San's 100,000 yuan salary.
The income, cost expenses, partners' salaries, and distribution ratio corresponding to scenario 3 are filled in the [Individual Income Tax Business Income Tax Return (Form B)], as shown in the following figure, the taxable income of the three partners is calculated:
Due to the loss, the taxable income of each partner is 0 yuan
Obviously, there is also a difference with the previous calculation of Zhang San's taxable income of 66,700 yuan and the taxable income of the other two lawyers of 0 yuan, and this difference is also due to the tax increase of Zhang San's salary of 100,000 yuan.
Because of the design problem (calculation problem) of the "Individual Income Tax Business Income Tax Return (Form B)", there is a discrepancy, assuming that the investor's salary is increased after the distribution of the partnership lawyer, such a difference will not occur.
These problems are also encountered in the daily work of the training, but when declaring the personal income tax income tax of the law firm's business income, after filling in the data in the form, the system will automatically calculate, and the training does not have more to think deeply about why this is the result, of course, the data encountered by the practice is not so special, and it has not attracted the attention of the training.
Fiscal and taxation practice is a very practical work, only by filling in the relevant return forms for verification and calculation results, can we understand why there is a difference, and we will find out what is unreasonable.
Second, a few days ago, there was a law firm financial consulting training, the partnership lawyer withdrew from the partnership in the middle of the year, how to calculate the distribution ratio of the partnership lawyer, of course, the distribution ratio we discussed is based on taxable income.
According to the practice of their own understanding, under the premise that the partnership lawyer agrees on the distribution ratio, because there is a partnership lawyer joining the partnership and withdrawing from the partnership, the distribution ratio of the partnership lawyer is no longer a simple fixed proportion, so it is necessary to calculate the distribution ratio of the partnership lawyer through weighted average according to the period in which the partner is located, the corresponding quarterly income, and the agreed distribution ratio, and then calculate the taxable income of the partnership lawyer.
Suppose that Law Firm A has partners Mr. Zhang, Mr. Li, Mr. Wang, Mr. Zhao, Mr. Liu, Mr. Zhang quit in March, Mr. Li quit in June, Mr. Wang and Mr. Zhao joined the gang in April, And Mr. Liu joined the gang in August, and in 2021, Law Firm A's profit in the first quarter was -1 million yuan, the profit in the second quarter was 2 million yuan, and the profit in the third quarter was 2.5 million yuan, then the cumulative profit in the 1-2 quarters was 2 million yuan, and the profit in the 1-3 quarters was 3.5 million yuan.
The distribution ratio of the partnership lawyer is calculated in two ways, the first is to calculate the distribution ratio (as shown in the figure below), directly weighting the average taxable income of each partnership lawyer in the 1-3 quarters, and then calculating the distribution ratio:
Mr. Zhang's taxable income: -100 * 50% = -500,000 yuan Taxable income is 0
Zhang lawyer distribution ratio: -50/350=-14.29%
Mr. Li's taxable income: -100 * 50% + 200 * 33.33% = 166,600 yuan
Lawyer Li's distribution ratio: 16.66/350 = 4.76%
Mr. Wang's taxable income: 200 * 33.33% + 250 * 33.33% = 1.4999 million yuan
Wang lawyer distribution ratio: 149.99/350 = 42.85%
Mr. Zhao's taxable income: 200 * 33.34% + 250 * 33.33% = 1.50 million yuan
Lawyer Zhao's distribution ratio: 150/350=42.86%
Mr. Liu's taxable income: 250 * 33.35% = 833,500 yuan
Lawyer Liu's distribution ratio: 83.35/350= 23.81%
However, the calculation result of filling in the declaration form is not the case, and the difference is that the loss that Lawyer Zhang should bear is automatically compensated, so that the actual distribution ratio of Lawyer Zhang is 0, not a negative ratio.
In the first quarter, the taxable income of Mr. Zhang and Mr. Li was 0
The taxable income of Lawyer Li in the first to second quarter = 100 * 33.33% = 333,300 yuan,
Proportion of lawyers assigned to Lawyer Li in the 1st-2nd quarter = 33.33 / 350 = 9.52%
In the 1st-3rd quarter, Mr. Wang's taxable income = 100 * 33.33% + 250 * 33.33% = 1.1666 million yuan,
Proportion of Lawyer Wang's Allocation in Q1-3 =116.66/350=33.33%
In the first to third quarters, Mr. Zhao's taxable income = 100 * 33.34% + 250 * 33.33% = 1.1667 million yuan
Proportion of lawyers assigned by Mr. Zhao in the 1st-3rd quarter =116.67/350=33.33%
Mr. Liu's taxable income in the 1st-3rd quarter = 250 * 33.34% = 833,500 yuan,
Allocation ratio of lawyer Liu in the first to third quarter = 83.35 / 350 = 23.81%
Such calculation results are also repeatedly verified and calculated in the declaration system, otherwise either Lawyer Li will have to pay back the tax, or the total distribution ratio will not be 100%.
Thank you To Mr. Bart for throwing bricks and stones in the group chat.
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VivianLin editor on October 23, 2021, welcome to leave a message and forward, interested friends can also private message or add WeChat consultation.