Tax avoidance?

Xia Yunleng paused.

It's not for the topic of tax avoidance in Liu Zonghan's mouth, but for his intention to suddenly bring it up.

Tax avoidance is an eternal topic for enterprises, and now just the machinery factory, according to Qin Lin's statistics, the taxes to be paid every quarter are calculated in millions, even higher than their own net profits, Xia Yun naturally also considered how to avoid taxes, but he didn't understand what Liu Zonghan meant by suddenly mentioning this, and what did it have to do with what he just said, jointly running a school.

Looking at Xia Yun's slightly puzzled eyes, Liu Zonghan smiled slightly, "Xia Yun, in fact, according to the current situation of your Nanyang Group, it is the most reasonable and favorable time to start this project after the group is successfully listed. ”

Xia Yun nodded and didn't speak, which was obvious.

Liu Zonghan looked at Xia Yun and suddenly said again, "Xia Yun, in fact, you have a better choice, which can expand your influence, reasonably avoid taxes at the same time, and pass on your wealth as much as possible!" ”

Xia Yun frowned, looked at Liu Zonghan thoughtfully, and did not speak.

Liu Zonghan said again, and immediately made Xia Yun's vague thoughts tend to be clear, "Xia Yun, have you ever thought about doing charity?" ”

Xia Yun thought for a moment before he said slowly, "Uncle Liu, do you mean to let me go to a charitable foundation?" ”

Liu Zonghan smiled slightly, "That's right. It's a charitable foundation, it seems that you should have studied it too, so I won't say more. Just ask if you are interested, if you are interested, I can ask Qingqing to subscribe for part of the shares on behalf of our Liu's Group! ”

Xia Yun didn't agree directly, but asked Liu Zonghan with some hesitation, "Uncle Liu, our Celestial Empire is different from the countries outside. The law in this area is also not very sound, and it is not unrealistic to set up a charitable foundation? ”

Liu Zonghan sighed, "Sooner or later, our Celestial Empire will levy an inheritance tax. Wealthy families, after all, still need to consider the problem of being rich for three generations and inheritance, with the reference of those foreign families, charitable funds are always a good method. It's better than insurance, trusts, etc. ”

Xia Yun understood what Liu Zonghan meant. It's just that he's still a little hesitant.

A charitable foundation, as the name suggests, is a non-profit and public welfare foundation dedicated to charity.

In the Celestial Empire, according to different natures, charitable foundations are divided into two forms: public and non-public, public funds naturally refer to funds that can raise donations from the public, these are generally funds directly controlled by the government, such as the Red Cross, the Celestial Empire Charity Federation, the Youth Foundation, the Disabled Persons' Federation, and so on. There are also non-public funds that are converted into public funds, but this difficulty coefficient is not ordinary. Throughout the Celestial Empire, there is also a non-public fund that has obtained the qualification to raise funds from the society, and this fund is the One Fund controlled by Jet Li.

These public charitable foundations can raise a large amount of funds from the public, but these funds must also have no less than 70% of the annual amount for public welfare and charity.

The charitable fund that Liu Zonghan and Xia Yun said refers to non-public funds, this kind of fund, without the right to raise donations from the society, is usually established by enterprises or private donations, this kind of charitable fund, every year needs to donate 8% of the total amount of funds for public welfare and charity, and the remaining 92% is controlled by the foundation itself, which can be invested in value preservation and appreciation, and can also continue to invest in charity.

The biggest advantage of this charitable foundation over donating enterprises or individuals is that it can reasonably exempt a considerable part of taxes.

According to the provisions of the new enterprise income tax law of the Celestial Dynasty, the part of the public welfare donation expenditure incurred by the enterprise that does not exceed 12% of the total annual profit is allowed to be deducted, and the excess part shall not be carried forward to the next year for deduction.

For example, if Xia Yun's machinery factory has a profit income of 50 million yuan a year, then he should have paid 25% of the corporate income tax, that is, 12.5 million yuan, but if the company donated 12% of the profits to the charitable foundation, that is, 6 million yuan, then the 6 million yuan does not need to be deducted, and the tax he needs to pay is only 25% of the remaining 44 million yuan, that is, 11 million yuan, after subtracting 6 million yuan from 50 million yuan, and can pay 1.5 million yuan less tax.

Some people may say that in this way, the total amount of donations and taxes spent by enterprises is 17 million yuan, which is 4.5 million yuan more than the normal tax payment, isn't it a loss?

Indeed, if it is donated to other public welfare organizations, it is indeed not cost-effective, so in the Celestial Empire, except for natural disasters such as major earthquakes, there are not many enterprises willing to donate large amounts.

However, this is not the case if the recipient of the donation is changed to your own business or a charitable foundation established by a private person.

This kind of charitable foundation is non-public, as long as 8% of the total amount of funds is donated every year, the remaining funds are still at the disposal of the fund itself, and there is no need to disclose the specific use of funds to the public, in fact, only 11 million yuan of taxes, and 480,000 yuan of public welfare donations, compared with 12.5 million yuan of corporate income tax, it is still much more cost-effective.

Moreover, the establishment of a charitable foundation can reasonably avoid taxes, and secondly, it can also earn a good reputation for the enterprise, which can be described as killing two birds with one stone.

In foreign countries, charitable foundations have another more important function, that is, the transmission of family wealth.

Nowadays, the Celestial Empire has not officially introduced inheritance tax, but in Europe and the United States, inheritance tax of up to 55% of the inheritance has long been started; Hundreds of millions of family assets want to be passed on to their children and grandchildren, and after an inheritance tax is levied, it usually has to be reduced by more than half.

The inheritance, which mainly exists in the form of corporate equity, cannot withstand such division and tossing.

In order to circumvent the division of family property under the inheritance tax system, wealthy families in European and American societies. It is common to avoid the division of inheritance tax by placing assets in privately controlled charitable foundations, nominally donating to charities.

Such foundations are nominally public good. However, the members of the board of directors of the fund are all served by the successors, who jointly make decisions on the fund, manage investment and public welfare affairs, and are basically the descendants of the family, and only need to donate at least 5% of the total amount of funds for public welfare and charity every year, so as to ensure that the huge wealth in the name of the foundation is always controlled by the descendants of the family.

The bottom line of the Celestial Empire's donation is 8%, while abroad, public welfare and charity expenditures only need 5%.

And. This charitable expenditure, which can also be directed, is determined by the foundation itself. Among them, there can also be a lot of articles that can be done.

In foreign countries, such charitable funds are everywhere because of this.

Don't. After two or three generations of inheritance division. Not many families have been able to thrive.

For wealthy families abroad, the establishment of a charitable foundation is the most ideal way to inherit the family property, avoid the high inheritance tax, and even penetrate into every corner of society.

The children and grandchildren of the family, if they have the ability, will naturally be able to do something through this foundation; If you don't have the ability. can also receive a high salary from this foundation and wait for death - just like there are many children of wealthy families who do not succeed in family business and live by receiving dividends from dry shares, capable children of wealthy families. Enter a family-controlled business to hold a key position and gain a corresponding social status.

Although there is also a necessary 5% annual expenditure for charity, it is really insignificant compared to the inheritance of wealth, and the so-called enthusiasm for charity is just a fig leaf on the surface.

In the Celestial Empire, although there is no mandatory inheritance tax at the moment, this is also the general trend. If a society wants to continue without serious imbalances, it is impossible to allow a family to accumulate wealth like a snowball without limit, nor can it allow the rentier class to expand without limit.

Therefore, in recent years, non-public funds in the Celestial Empire have sprung up like mushrooms after a rain, probably learning from foreign experience and the idea of family inheritance.

It's just that, compared with foreign countries, there is no inheritance tax in the Celestial Empire, so the role of charitable foundations is not so big for the time being, and the risks are obvious.

The most important thing is the preservation and appreciation of the fund, 8% of the total amount of funds donated every year, which is the real bottom line, if you want to set up a charitable foundation and enjoy all aspects of tax incentives, you must complete this condition, and if you can't do it, you will be banned immediately.

Counting inflation and other factors, the annual capital appreciation of the foundation must reach more than 10% before it will not become less and less, so that later, because there is no money, it is forced to be withdrawn.

As for how to maintain and increase the value of the foundation, in the past, it was a safe way to deposit in the bank to eat interest, or treasury bonds, money market funds, etc., but now the interest on bank deposits and the income on treasury bonds are not so high, and it has become thinner and thinner, and the money is getting smaller and smaller.

Charitable foundations are not like ordinary enterprises, have fully functional departments, and are non-profit, and cannot engage in production and business activities, and the currently open investment channels for capital appreciation are mostly stocks, securities, and the like, and even if it is investment profit income, according to the "Notice on the Taxable Income of Foundations" issued by the State Administration of Taxation of the Celestial Dynasty in 1999, the asset appreciation income of the Celestial Empire Public Welfare Foundation needs to pay 25% income tax like that of commercial enterprises.

How to safely increase the value of funds, this is also a headache for domestic funds.

Xia Yun is also worried about this, after the establishment of the charity fund association, although it is said that donor companies can temporarily avoid taxes, but if there is no stable capital appreciation plan, the foundation will also lose more than it gains.

Liu Zonghan looked at Xia Yun's expression, and he also knew what he was worried about, but he just smiled faintly at this, "Xia Yun, do you remember how I really made my fortune?" ”

Xia Yun was slightly stunned, and then his expression became serious.

Liu Zonghan's family history is well-known in the entire Viet Ninh and even Su Province, and no one knows it, and no one knows it, and the free medicine that cannot be shaken three times a year has lasted for nearly 30 years.

It is this kind of free medicine for 30 years that makes Liuwang Pharmacy, a subsidiary of Liu's Group, occupy more than 90% of the drug retail share in the entire Jiangsu Province, and no company can shake it.

Liu's Group has also entered the peak period of rapid development, from a pharmaceutical retail enterprise, to the transformation and development of the entire pharmaceutical industry, in just a dozen years, it has become the leading enterprise with the highest market value in Jiangsu Province, Liu Zonghan himself, with his net worth of nearly 10 billion, has become the richest man in Yuening City.

It is also called a good person by hundreds of people, and a Buddha in ten thousand families!

"The establishment of a charitable foundation is to avoid taxes, but the most important purpose is to be charity, not to use charity as a guise!"

"The net worth has reached our level, earning a little more and less in the short term, in fact, there is no point in making a difference, we should look at the long term, and don't be blinded by the little profit in front of us."

"Charity may be a loss-making thing in the short term, but in the long run, it is definitely the most rewarding thing, whether it is in terms of economic benefits or other aspects."

"Giving back to the society is originally the responsibility of our rich people!" (To be continued......)