Signing Contracts Skillfully And Saving Taxes

A A company in a city has contracted the office building and residential building project of a building unit. Now B company is organizing to arrange C and D company to sign the sub contract, the total amount of the contract is 36 million yuan, and the A company pays B company 2 million yuan separately.

The intermediary fees collected by B shall be calculated on the basis of the 5% tax rate applicable to the "service industry" tax, and the business tax shall be paid by =200 * 5%=10 (10000 yuan).

The urban construction tax and education fee shall be 10 x (7%+3%) =1 (10000 yuan).

B company shall pay tax =10+1=11 (10000 yuan).

In order to save taxes reasonably, B company can make the following plan, that is, in the construction industry.

B company pays business tax (3800-3600) x 3%=6 (10000 yuan).

Urban construction tax and education fee shall be added to =6 x (7%+3%) =0.6 (10000 yuan).

B company shall pay tax =6+0.6=6.6 (10000 yuan).

After the plan, B company's 2 million yuan income will be paid according to the "construction industry" tax rate of 3%, the tax burden can be greatly reduced, and the tax will be paid less than 44 thousand yuan.

The above plan is based on the seventh provision of the national tax Letter No. [1995]156: engineering contract firms contracting construction and installation business, that is, the construction and installation business of the contract between the contract firms and the construction unit. Whether or not it is involved in the construction, the business tax should be levied according to the "construction industry" tax.

The engineering contract firms does not sign a contract for construction and installation works with the construction unit. It is only responsible for the organization and coordination of the project. The business tax for the business of contract firms is collected according to the "service industry" tax.

That is to say, when B company subcontracts or subcontracts other projects, the total turnover of the project should be reduced by 38 million yuan to the subcontractor or 36 million of the subcontractor's cost, and the remaining 2 million yuan will be the turnover.

B company and A company sign construction project contract, regardless of whether it is involved in the construction, the business tax should be levied according to the tax rate of 3% of the construction industry tax; if B company does not sign a construction contract with A company, but sign a contract for discipline, and only be responsible for the organization and coordination of the project, then the intermediary fee charged shall be levied according to the "service industry" tax rate applicable to 5% of the business tax.

Therefore, the tax items that should be paid for the business tax of some projects are different from those applicable to the nature of the contract. Taxpayers should comprehensively analyze their business situation and make use of the planning space of different tax items to reasonably save taxes.