Planning Public Donations Can Adjust The Tax Burden Of Enterprise Income Tax

Through tax donation, public welfare donations can reduce tax burden, so that enterprises can get more distribution profits while saving taxes.

Perhaps many corporations consider donation as a virtue. Why do they conflict with tax planning and tax saving?

In fact, in many years of practical work, it is found that tax planning through public donations can really regulate the tax burden of enterprise income, so that enterprises can get more development funds. Besides, tax payment is an obligation, donation is a virtue, and they do not conflict with each other. Therefore, tax collection and planning for donations is a must for enterprises' own development and does not affect the original intention of doing good deeds.

As we all know, the basic rate of enterprise income tax is 33%. However, in order to take care of small businesses, the state has set a preferential tax rate of two. That is, "enterprises with annual taxable income below 30 thousand yuan (including 30 thousand yuan) are temporarily reduced by 18% of the corporate income tax. The annual taxable income is reduced at 27% tax rates between 30 thousand yuan to 100 thousand yuan (including 100 thousand yuan). The annual taxable income exceeds 100 thousand yuan, which is collected at the rate of 33%".

Owing to the existence of the above two provisions and the donation itself is a voluntary act of enterprises, the enterprises with less taxable annual income can adjust the corporate income tax burden through public donations, so that enterprises can get greater profits.

In the end of year accounts, an enterprise calculates the annual taxable income amount by 101000 yuan according to the tax law. According to the tax law, the enterprise should pay 33330 yuan (101000 * 33%) of the income tax at the rate of 33%, and the net profit of the enterprise is 67670 yuan (101000-33330).

However, if the enterprise in the process of year-end accounts, through the domestic non-profit social organizations and state organs, with a statutory deduction of 3030 yuan (101000 x 3%), 1000 yuan will be donated to the public welfare undertakings, then the taxable income of the enterprise will be 100000 (101000-1000). According to the tax law, the enterprise income tax shall be reduced by 27000 yuan (100000 x 27%) at the 27% tax rate, and the net profit of the enterprise will be 73000 yuan (10, 1000 to 1000 to 27 thousand). We can see that although the enterprise has donated $20 million, it has saved the tax revenue of yuan yuan, and the net profit has also increased by RMB.

Similarly, assuming that the enterprise calculates the annual taxable income of 30500 yuan, it should pay 8235 yuan (30500 * 27%) of the income tax at the rate of 27%, and the net profit of the enterprise is 22265 yuan (30500-8235). If the 915 yuan (30500 x 3%) of the statutory deduction is donated to the public welfare undertakings by the non-profit social organizations and state organs within the 915 yuan (30500 x 3%), the taxable income of the enterprise will be 500 yuan (500), the tax rate shall be RMB, the income tax shall be RMB yuan (* *), the net profit will be RMB yuan (30 500 to 500 to 500), and the net profit will be increased by RMB yuan.

Through comparison, we can see that proper public donations can really reduce tax burden and enable enterprises to gain more profits from distribution.

Therefore, in the course of actual operation, enterprises should make reasonable donation tax planning, fully consider and make good use of the preferential policies of people and organizations who give good deeds to the tax law, so that good deeds will last for a long time, so that enterprises can establish a good public image in the society and ensure enterprises to develop faster and better.