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Can you avoid taxes by buying a luxury car or a luxury house? The focus of tax inspection in 2024 has been clear, and this may become the focus

author:Tax it

"Tax Bar" provides the latest financial and tax information and local preferential policy support landing!

  In 2024, with the launch of the fourth phase of the Golden Tax, the collection system has been improved, and the issue of tax saving has gradually become the focus of public attention. Especially in some profitable companies, the high personal income tax required for dividends is a headache for many entrepreneurs and shareholders. In this context, some "financial and tax consultant experts" have proposed ways to avoid taxes by buying luxury cars and mansions. However, this practice is not without risk, and it can be said that it is not safe at all.

Can you avoid taxes by buying a luxury car or a luxury house? The focus of tax inspection in 2024 has been clear, and this may become the focus

  First of all, from the perspective of tax policy, buying luxury cars and mansions in the name of individuals and selling them to companies at a low price can indeed reduce the personal income tax required to pay dividends to a certain extent. Because the dividend income belongs to the category of individual income tax, while the income from the sale of property belongs to the income from the transfer of property, the tax rates of the two are different. If the company rents these assets at a reasonable price after purchasing a luxury car or house, then the rental income can also be used as the company's expenses, thereby reducing the payment of corporate income tax.

  When the tax department conducts an audit, it will focus on whether the transaction has a reasonable commercial purpose. If a business buys a luxury car or mansion not out of practical necessity, but simply to save taxes, then this behavior is likely to be seen as an abuse of tax policy and thus punished by the tax authorities.

Can you avoid taxes by buying a luxury car or a luxury house? The focus of tax inspection in 2024 has been clear, and this may become the focus

  So how should enterprises and individuals deal with such problems?

  There is a way to save taxes, and compliance management under the fourth phase of the golden tax has become a must practice for many enterprises, and it is possible that the enterprise has not been prompted now, but please do not have a fluke mentality, the audit and prosecution period can be as long as ten years, how to plan for compliance?

  subsidy incentives and support for preferential parks;

  You can land a limited company in the industrial park, enjoy 80%-90% of the value-added tax and income tax retained by the local government in the park, pay taxes in the current month, subsidize in the next month, and pay more and make more compensation. 50% of the value-added tax is retained by the local government and 50% is handed over to the central government, and 40% of the income tax is retained by the local government and 60% is handed over to the central government

  After the enterprise settles in the park, it does not need to relocate the entity, but can register a new company, branch, subsidiary, or relocation, and can enjoy local subsidy support, with a tax of 1 million yuan a year and a local subsidy of 400,000 yuan to help enterprises develop and reduce the tax burden of enterprises. For more preferential policies, please pay attention to "Tax Bar"

Can you avoid taxes by buying a luxury car or a luxury house? The focus of tax inspection in 2024 has been clear, and this may become the focus