Plan For Deducting The Amount Of Tax Earned From Overseas Income (2)

In the A country, the income tax is 120 thousand yuan, less than the deduction limit of 148 thousand and 500 yuan, which can be deducted in full; in the B country, the income tax is paid 161 thousand yuan, which is higher than the deduction limit of 158 thousand and 400 yuan, exceeding the limit of 2 thousand and 600 yuan, and it can not be deducted in that year.

(3) the income tax payable by the enterprise in the year and abroad is =63.69-12-15.84=35.85 (10000 yuan), and the rate of deduction (two) is deducted by the rate deduction method = (45+48) x 16.5%=15.345 (10000 yuan). The income tax =63.69-15.345=48.345 (10000 yuan) shall be calculated by comparing the above calculation results. The limit deduction method will save 124 thousand and 950 yuan (48.345-35.85) than the fixed percentage deduction method.

Let's look at another case: if the A country's income tax rate is 10% and the B country's income tax rate is 15%, the income tax paid in A and B is 40 thousand yuan and 69 thousand yuan respectively, which are lower than the national deduction limit, and can be deducted in full when calculating the amount of tax payable.

If the quota deduction method is adopted, the income tax payable by the enterprise within the year and abroad shall be =63.69-4-6.9=52.79 (10000 yuan); if the rate deduction method is adopted, the overseas deduction amount is still 153 thousand and 450 yuan, and the amount of income tax payable is =63.69-15.345=48.345 (10000 yuan).

The rate deduction method is 44 thousand and 450 yuan (52.79-48.345) less than the limit deduction method.

When the taxpayer chooses the deduction method, we should pay attention to the following points: first, before investing abroad, we should know the income tax rate of the invested country or region in advance, and the scope and standard of the pre tax deduction of the income tax, so as to preliminarily determine the income tax burden of the investor.

Two, when the quota deduction method is adopted, the taxpayers who have concluded the agreement on avoidance of double taxation with China, and the income tax exemption and exemption tax granted by the state tax law and the government regulations, as well as the foreign economic cooperation enterprises' assistance projects for the world economic organization and the Chinese government's embassies and consulates in the foreign government, are exempt from the income tax from the local governments.

In addition, if a taxpayer has a serious loss of natural disasters such as wind, fire, earthquake and other serious natural disasters abroad, and if there is any difficulty in continuing investment and business activities, he should obtain the proof of the Chinese government's embassies and consulates stationed abroad, etc., and report to the tax authorities for approval in accordance with the existing regulations.

Three, according to the investor's income tax burden, combined with China's income tax rates and pre tax deduction to determine what method to use.

Under normal circumstances, if the investor's income tax burden exceeds the income tax burden of China, the quota deduction method is adopted instead, and the fixed rate deduction method is adopted instead.

If we invest in more than two countries or regions, we can simulate the tax according to the expected rate of profits according to the tax rates of different countries, so as to compare the tax burden.

Four, deduction method shall not be changed after approved by the competent tax authorities.