The meaning of a sole proprietorship: a business entity invested by a natural person, all assets are owned by the investor personally, and the investor bears unlimited liability for corporate debts with his personal (or family) property. It does not have legal personality.

Preferential tax policies for sole proprietorships: 1. Easy to establish and low registered capital.

2. The fixed costs of operation are low and decision-making is independent.

The legal person makes the final decision on corporate matters.

3. There is no need to pay corporate income tax and personal income tax.

Preferential tax policies for sole proprietorships: 1. Personal (135) income tax assessment and collection: 0.5%-2.19% (see the case below for the algorithm) 2. Value-added (g036) tax: 3% (extra local retention 30-50% reward) 3

.Additional (65B3) tax: 0.18% (12% of value-added tax, levied at half for small scales) Assume that there is an existing XX architectural design Co., Ltd., excluding costs and other expenses, there is still a profit of 4 million that needs to pay corporate income tax.

Then pay dividends.

In this way, the tax that this limited company needs to pay is: 4 million*25%=1 million, (400-100)*20%=600,000, then this limited company can get 400-(1060)= after paying tax

2.4 million.

A sole proprietorship is now established in the tax park and enjoys the approved collection policy: Personal income tax: 4 million/1.03 (tax included) * 10% (industry profit rate) * 30% (five-level progressive system corresponding tax rate) - 40,500 (

Quick calculation deduction) = 76,000 Value-added tax: 4 million/1.03 (tax included) * 2.64% (actual tax amount after awarding 30% retained by the local government) = 103,000 Additional tax: 4 million/1.03 (tax included) * 0.18

%=07,000. If you set up a sole proprietorship, with a profit of 4 million, you only need to pay tax of 186,000.

Compared with the previous tax situation, the burden was reduced by a total of 1.415 million!

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Applicable scenarios for sole proprietorships: 1. Pricing transfer: The company has high profits, uses independent supporting equipment, and has business dealings with the main company.

2. Business transfer: Directly transfer existing business to Gedu and enjoy the dual benefits of Gedu’s low tax rate + high support.

3. Wage planning: Change the type of income from wages, labor services, commissions and bonuses to business income, thereby enjoying low tax rates.

Sole proprietorships have great advantages in simplifying taxation. If they can enjoy the assessment and collection of personal income tax through local preferential tax policies, this is a good opportunity for the company and will also help the company save a lot of expenses and help

Enterprise development.