Several Planning Methods Of Business Tax In Construction Industry (2)

According to the existing business tax, it is stipulated that taxpayers who engage in construction, repair and decoration works should settle the cost of raw materials and other materials and power for the project, regardless of how the other party should settle accounts.

According to this regulation, corresponding planning can be made.

With different ways of purchasing raw materials, different turnover can be achieved to achieve the purpose of saving taxes.

Case two: construction company A builds a house for the construction unit B, the total contract price is 3 million yuan.

The materials required for the project are purchased by the construction unit B, and the price is 2 million yuan.

After the price is settled, the business tax of the construction enterprise A is: (3 million yuan + 2 million yuan) x 3% = 150 thousand yuan.

If A planning, do not let B buy building materials, and purchased by A.

In this way, A can make use of its advantages in building materials market (familiar with the building materials market, buy quality materials at low prices), and buy the required building materials at a price of 1 million 500 thousand yuan.

In this way, the total contract price has become 4 million 500 thousand yuan. At this point, A should accept the sales tax as 4 million 500 thousand yuan, 3% yuan = 135 thousand yuan, and A has paid 15 thousand yuan less tax than before.

The application of different tax rates will be applied to contract firms if the contract is signed with the construction unit.

Specifically, if the contract firms contracts with the construction unit, it will apply the 3% tax rate of the construction industry; if the contract is not signed, the 5% rate of the service sector will be applied.

The different tax rates provide a good opportunity for tax planning.

Case three: construction unit B there is a project to be built by a construction unit.

Under the organizational arrangement of the engineering contract firms A, the construction unit C finally won the bid, so B signed a contract with C with a contract value of 2 million yuan.

In addition, B also pays $100 thousand for A enterprises.

At this point, A will accept business tax (applicable service tax rate) as 100 thousand yuan, 5% yuan = 5000 yuan.

If A is planning for B to sign a contract with himself directly, the contract amount will be 2 million 100 thousand yuan.

A then subcontracted the project to C.

After completion, A paid the price to C for 2 million yuan.

In this way, A should pay business tax (applicable to construction industry tax rate): (2 million 100 thousand yuan to 2 million yuan) x 3% = 3000 yuan.

So, through planning, A can pay less than 2000 yuan tax.

According to the document No. 1994 issued by the overseas tax company, according to the document No. 214 issued by the overseas subsidiaries, foreign businessmen will come to our country to carry out site investigation, collect information and understand the situation except for the beginning of the design. All the designs, drawings and other business will be carried out outside China. After the design is completed, the drawings will be handed over to the enterprises in China.

Under such circumstances, no business tax is imposed on all business revenue earned by foreign businessmen from China.

Undoubtedly, this provision will help to carry out tax planning.

Case four: B company intends to carry out a construction project, it first commissioned the domestic construction enterprise A as its design drawings.

The two sides signed a contract on this matter, with a contract value of 1 million yuan.

After obtaining income, the business tax payable by A is 1 million x 3% = 30 thousand yuan.

If A is planning to pay taxes, a smaller subsidiary C will be set up in Hongkong, and then C and B will sign the design contract.

After that, B paid C the design fee of 1 million yuan.

In accordance with the relevant provisions, under such circumstances, C does not have the duty to pay business tax.

So, through planning, we can pay less than 30 thousand yuan tax.