In a partnership, each partner is the taxpayer. If the partners of the partnership are natural persons, they shall pay individual income tax; Partners are legal persons and other organizations and are subject to corporate income tax.
So, how to deal with and declare the corporate income tax of corporate partners? Let's take a look~
1. How to calculate the taxable income of the partners of the legal person
The income from production and operation and other income of a partnership enterprise shall be subject to the principle of "first dividing and then taxing".
(1) Calculate at the partnership level first
The calculation of the specific taxable income shall be carried out in accordance with the relevant provisions of the Notice of the Ministry of Finance and the State Administration of Taxation on Printing <关于个人独资企业和合伙企业投资者征收个人所得税的规定>and Distributing (CS [2000] No. 91) and the Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Adjustment of the Pre-tax Deduction Standards for Individual Income Tax of Individual Proprietorship Enterprises and Partnership Enterprises (CS [2008] No. 65).
(2) Calculate the level of legal person partners
The partners of a partnership determine their taxable income according to the following principles:
1. The partners of the partnership shall determine the taxable income according to the distribution ratio agreed in the partnership agreement with the production and operation income and other income of the partnership enterprise.
2. If the partnership agreement is not stipulated or the agreement is not clear, the taxable income shall be determined according to the distribution ratio determined by the partners through consultation with all the income from production and operation and other income.
3. If the negotiation fails, the taxable income shall be determined according to the proportion of the partner's paid-in capital contribution based on all production and operation income and other income.
4. If the proportion of capital contribution cannot be determined, the taxable income of each partner shall be calculated on an average basis according to the number of partners based on all production and operation income and other income.
2. How to declare the taxable income of the partners of the legal person
In order to adjust the tax rate difference in the income attributable to the legal person partners from the partnership, line 41 of the attached table "Detailed Table of Tax Adjustment Items" (A105000) of the annual tax return of the enterprise income tax "(5) The taxable income payable by the partners of the partnership legal person" is added.
The instructions for filling in the form are as follows:
The first column "Amount in the account" shall fill in the investment income of the partnership legal person partners confirmed in the accounting of the partnership in the current year.
The second column of "tax amount" shall be filled in with the taxable income of the legal person partners who are distributed from the partnership enterprise calculated by the taxpayer in accordance with the principle of "first divide and then tax" and Article 4 of the Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Issues of Partnership Partners (CS [2008] No. 159).
If column 1 ≤ column 2, column 3 "Increase amount" fill in column 2-1.
If column 1 > column 2, column 4 "Reduction amount" is filled in with the absolute value of the amount in column 2-1.
3. Other precautions
(1) The income from the production and operation of the partnership and other income, including the income distributed by the partnership to all partners and the income (profits) retained by the enterprise in the current year.
(2) The partnership agreement shall not stipulate that all profits shall be distributed to some of the partners.
(3) If the partners of a partnership enterprise are legal persons or other organizations, the partners shall not use the losses of the partnership to offset their profits when calculating their payment of enterprise income tax.
Fourth, the declaration form to fill in the example
On October 1, 2020, A limited liability company and several natural persons established an investment partnership (limited partnership) A, with a total paid-in capital of 100 million yuan by the partners, and 70% of the capital contribution of a limited liability company.
In 2023, the partnership will realize an income of 10 million yuan, and since the long-term equity investment is accounted for by the cost method, the investment income of the legal person partner is not recognized in the accounting. According to the partnership agreement, the legal person partners should share back 7 million yuan, so the "tax amount" in column 2 of line 41 of the "Tax Adjustment Item Schedule" (A105000) should be filled in 7 million.
The partnership announced the distribution of 5 million yuan of retained profits in the previous year, and the legal person partners returned 3.5 million yuan, and the accounting was included in the investment income of the current year. At the same time, the first column of line 41 of the "Tax Adjustment Item Schedule" (A105000) "Account Amount" was filled in 3.5 million.
The following figure shows the filling in the "Tax Adjustment Item Schedule" (A105000) of Company A, a legal person partner:
Policy basis
1. Notice of the Ministry of Finance and the State Administration of Taxation on Income Tax Issues for Partners of Partnership Enterprises (CS [2008] No. 159)
2. Notice of the Ministry of Finance and the State Administration of Taxation on Printing <关于个人独资企业和合伙企业投资者征收个人所得税的规定>and Distributing (CS [2000] No. 91)
3. Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Adjustment of the Pre-tax Deduction Standards for Individual Income Tax for Sole Proprietorship Enterprises and Partnership Enterprises of Individual Industrial and Commercial Households (CS [2008] No. 65)
Recommended in the past
1. Notice on the 2023 annual enterprise income tax final settlement
2. Topic 2 of Enterprise Income Tax Final Settlement 丨One-time deduction policy for fixed assets
3. Enterprise income tax final settlement topic 3丨Depreciation and deduction policy for fixed assets
4. Topic 4 of enterprise income tax final settlement | Preferential income tax policies for small and low-profit enterprises
5. Topic 5 of enterprise income tax final settlement丨Pre-tax deduction ratio of common expenses
6. Enterprise Income Tax Final Settlement Topic 6丨Pre-tax Deduction Voucher (1)
7. Enterprise Income Tax Final Settlement Topic 6丨Pre-tax Deduction Voucher (2)
8. Enterprise Income Tax Final Settlement Topic 6丨Pre-tax Deduction Voucher (3)
9. Enterprise Income Tax Final Settlement Topic 6丨Pre-tax Deduction Voucher (4)
10. Provisions on revenue recognition of enterprise income tax final settlement topic 7丨
11. Enterprise income tax final settlement and payment topic 8丨Wages and salaries
12. Enterprise income tax final settlement and payment topic 9丨Interest expense
13. Special topic 10 of enterprise income tax final settlement丨Non-taxable income
14. Enterprise income tax final settlement topic 11丨R & D expenses additional deduction (1)
15. Enterprise income tax final settlement topic 11丨R & D expenses plus deduction (2)
16. Enterprise income tax final settlement topic 12丨Pre-tax deduction of asset losses
17. Enterprise income tax final settlement and payment of special topic 13丨Employee education funds