Is the personal income tax paid by the rich high?

At present, China's personal income tax system combines synthesis and classification, and wages, salaries, labor remuneration, royalties and royalties are comprehensively taxed annually.

Under the condition of comprehensive taxation, the tax rate is generally an excessive progressive tax rate. The higher the income, the higher the applicable marginal tax rate. At present, the highest comprehensive tax rate is 45%, and the tax rate is progressive, so the higher the income tax rate, the higher the personal income tax burden.

Classified taxation is generally a proportional tax rate. For example, interest and dividends are subject to a proportional tax rate of 20%, and the tax burden of high income and low income is the same under the proportional tax rate.

I noticed a news that boss Dong paid personal income tax according to his annual salary, and the tax rate reached 45%, which should be considered as high personal income tax, while a boss's annual salary was only 1 yuan, which I guess should be tax planning and get high dividends.

But in fact, the sources and forms of income of the rich are more complicated and richer than ordinary people, and many people have overseas investments. Therefore, there are various tax avoidance methods, and tax source management is more difficult, such as indirect transfer of domestic equity, related party transactions, control of overseas enterprises, and change of taxpayer status.

The new Individual Income Tax Law of People's Republic of China (PRC) introduces anti-tax avoidance clauses, which provides policy basis for anti-tax avoidance of individual income tax from the aspects of independent transaction principle, controlled foreign enterprise rules and general anti-tax avoidance rules. At the same time, in view of the cross-border tax avoidance behavior of high net worth people, tax collection and management measures such as taxpayer identification number, department information, cancellation of nationality and payment of personal income tax are implemented.

In theory, the rich pay more personal income tax than the poor. Because personal income tax is divided into two types, namely comprehensive income and classified income, although the tax calculation methods are different, generally speaking, regardless of comprehensive income or classified income, the higher the income, the more tax will be paid. However, in practice, there is a certain discrepancy between theory and practice, and many rich people pay little tax. Why is this happening? The reason is complicated.

Personal income tax divides personal income into two categories and nine items, namely, income from wages and salaries, royalties, royalties, business income, property lease income, property transfer income, interest dividends and accidental income.

The way for the rich to get rich is nothing more than the above nine projects.

Whether you make millions a year, manage money, or invent and write articles to get rich, the higher your income, the higher your tax.

The annual income of some best-selling writers can reach 10 million yuan or even exceed 100 million yuan.

The author of the famous historical novel Those Things in Ming Dynasty, whose real name is Shi Jian, was once a civil servant. By writing novels, the contribution fee income exceeds 40 million yuan. If he depends on his salary, he can't earn 40 million in his life.

Of course, the income from the manuscript fee exceeds 40 million, and he must have paid a lot of personal income tax. In particular, the income from wages and salaries adopts 7 levels of excessive progressive tax rate, with the highest tax rate of 45%; Other categories of income shall be subject to a proportional tax rate of 20%.

Therefore, the higher personal income, the more income tax must be paid.

Why is this happening? According to my personal analysis, there are the following factors.

First, a lot of income is invisible.

This situation is most obvious in the bosses of many small and medium-sized enterprises. In many small and medium-sized enterprises with imperfect and irregular financial and accounting systems, the book salary of bosses is often very low, and some of them are even less than 5000 yuan of personal income tax exemption, and they don't pay a penny of personal income tax.

But in fact, the boss gained a lot of income in the process of starting a business. The prerequisite for obtaining this kind of income is that the financial accounting system is very chaotic and imperfect, the public and private income are confused, and the funds from corporate public accounts are transferred to private accounts at will.

Second, there are many rich people who evade taxes.

The most typical case is tax evasion in the entertainment circle. For example, Liu Xiaoqing tax evasion case, Fan Bingbing tax evasion case 20 18. The big coffee stars in these entertainment circles have high incomes, but many people often use yin-yang contracts to achieve the purpose of paying less taxes.

Fan Bingbing and Liu Xiaoqing were just unlucky to be discovered. Many other stars actually adopted the same method, but they were lucky not to be discovered.

Some high-income people will put on a legal coat in a professional way to achieve the purpose of tax avoidance.

Some places in the world are tax havens, such as the British Virgin Islands and Bermuda, which are famous for their low tax rates.

Moreover, the income tax rates of different countries in the world are different, giving high-income people room to operate.

According to the data released by the IRS this year, in the first quarter of 2020, 2,909 American citizens gave up American citizenship, an increase of 1.0 15% from the previous month, even exceeding the total number of people who gave up American citizenship last year. A large part of the reason is tax avoidance.

Anyone who earns income needs to pay taxes, but it doesn't depend on how to pay taxes.

For example, if it is a small and micro enterprise with an annual net profit of 300,000 to 300,000, it may be more tax-saving to pay the boss;

If it is a big enterprise, it can earn tens of millions or even billions every year. Of course, it is more tax-saving to pay dividends through the company.

Therefore, taxes must be paid, and the key is how to pay and save taxes.

Therefore, we will find that the rich generally have their own private tax planners (accountants) and lawyers to serve them, in order to find ways and means to save taxes.

Let me answer this question. Whether the rich pay high personal income tax is correct in theory, but not necessarily. First, many rich people don't need to pay personal income tax if they don't pay dividends from the company. Second, the rich will ask the firm to make tax planning and reasonably avoid personal income tax (such as personal income tax on equity transfer). Third, from the current policy, tax authorities can't do 360-degree tax collection and management, and tax evasion is objective. Fourth, there may be tax evasion for the rich with poor awareness of tax compliance. Next, let's talk about the tax-related issues of the rich. From the perspective of tax policy, first of all, the rich have four comprehensive incomes, namely salary income, labor remuneration income, royalties income and remuneration income, which belong to the taxable scope of personal income tax. Four incomes are deducted with a special additional deduction of 60,000 yuan, and then six special additional deductions such as children's education, continuing education, serious illness medical care and support for the elderly are deducted. After other deductions, the taxable income above 0 shall be subject to the seven personal income tax rates of 3% to 45%. Secondly, if the rich are involved in property transfer (such as real estate, land, equity) and property lease (movable property, real estate, etc.). ), interest, dividends and bonus income (dividends of the companies they invest in), and they have to pay 20% personal income tax. For example, if you rent a house, you have to pay value-added tax (5% for non-housing and 0/.5% for housing), urban maintenance and construction tax, surcharge for education, surcharge for local education, property tax (0/2% for facade and 4% for housing) and stamp duty. Finally, if the rich set up individual industrial and commercial households or sole proprietorship enterprises to engage in production and operation, they should also pay taxes. It mainly involves value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge, consumption tax (industry is within the taxable scope of consumption tax), travel tax, resource tax (special industry), land use tax (taxable scope), property tax (taxable scope) and personal income tax. Of course, in the past two years, the state has reduced taxes and fees, and there are many preferential tax policies for enterprises and individuals, and the tax burden of enterprises and individuals has been reduced to varying degrees.

Rich people become rich because they definitely earn more money than ordinary people. On the other hand, in terms of reasonable tax avoidance, there are various means and teams to operate for them to achieve the purpose of reasonable tax avoidance.

1. Set up a company in a tax haven. Bermuda, Virgin Islands and Cayman Islands are the favorite places for China companies to register. Alibaba, Dangdang, Qihoo 360, Sina and other companies are all registered in the Cayman Islands in the Caribbean. There are more than 200,000 China companies registered in the Virgin Islands, and the establishment of these companies is not subject to foreign exchange control. Moreover, almost all offshore jurisdictions expressly stipulate that the shareholder of an offshore company can be one person, the company's shareholder information, shareholding ratio, income status and so on. Enjoy the right to confidentiality. If shareholders don't want to, they can not disclose it to the public.

2. The establishment of a family trust and other tax avoidance, through which the client transfers the ownership of the property to the trustee, legally, the property incorporated into the trust is no longer owned by the client, so it does not belong to the category of inheritance, so there is no need to pay inheritance tax. It is said that Jia Yueting used this trick to set up a family trust, and the failure or bankruptcy of his other investments will not affect this family trust.

3. By doing charity to avoid tax, we often hear how much property American rich people put into charity. In fact, according to American law, if the rich want to leave their inheritance to their children, the federal government will withdraw more than half of the inheritance tax. Therefore, many wealthy Americans evade inheritance tax through charitable donations. Some private charities have been set up in China. Because it is non-profit, it can also be exempted from auditing, and the children serve as executives and receive high remuneration.

Of course, with so many bad things, there must be positive people. Dong Mingzhu, the Iron Lady, has publicly stated that her annual salary is more than 5 million and her personal income tax is 45%. This is also a positive example!

In short, rich people have more ways than ordinary people, so consider how to increase their income!

Dong Mingzhu, I answered this question.

You can search.

Dong Mingzhu answered about 45% tax.

In theory, the rich should pay higher personal income tax.

Personal income tax is basically the higher the income, the higher the tax rate, or the higher the income, the higher the tax rate.

For example, the tax rate of our comprehensive income such as wages and salaries is 3% to 45%, and the highest is 45%; The highest tax rate of operating income is 35%; The tax rate of the remaining dividends, dividend interest income, etc. It is 20%.

Just looking at the above tax rates, we can draw a conclusion that the personal income tax paid by the rich will be very high.

But, actually?

There are many bosses (chairmen) in listed companies, but the announced salary is very low. Some even announced that their annual salary was only 1 yuan. In this case, do the bosses of these listed companies still need to pay high personal income tax for their wages? -Obviously not!

Because for the bosses of these listed companies, even if they can't get a penny, they live more smartly than the working class, because they don't have to spend a penny themselves, and all his expenses are owned by the company and can be reimbursed. Even if you go abroad for vacation, you can go to first class or company private jet, or private cruise ship. The place to live can be the most luxurious hotel or villa, mountain villa, etc. In the world; Of course, the food is also the top in the world; Then, a large crowd followed. . . Even if a person spends a day or a meal, it far exceeds the annual income of many wage earners. People are also "normal business activities", and everything is reimbursed by the company. Individuals only need to pay personal income tax.

Dividends are taxed at 20%, which is too high for ordinary people. However, for real big bosses, they don't have to pay.

The Notice of State Taxation Administration of The People's Republic of China, Securities Regulatory Commission of the People's Republic of China, Ministry of Finance on Relevant Issues Concerning Individual Income Tax Policies for Dividends and Bonuses of Listed Companies (Caishui [20 15] 1 0/No.) stipulates that since September 8, 2015, individuals have obtained shares of listed companies from the public offering and transfer market and held more than/kloc.

Did you get a look at him? -If the shareholding period exceeds 1 year, the income from dividends will be temporarily exempted from personal income tax. Those people will hold more than 1 year, which is definitely the size. However, this policy is not available for small and medium-sized enterprises that are not listed, so the owners of small and medium-sized enterprises cannot enjoy it.

In addition, there are many similar preferential tax policies. Rich people are surrounded by elites who have graduated from various world famous schools to serve them and make various tax plans to reduce their tax burden. In order to attract high-net-worth people, local governments, including foreign governments, will also give many preferential policies, such as various tax incentives and subsidies that are often given throughout China.

Of course, the rich have to pay a lot of taxes for their social image, but compared with their huge income, their tax burden is far lower than that of the average working class.

First of all, the rich also have to pay taxes.

But we can look at this problem from another angle-will the rich pay higher taxes than ordinary people? Look at the title of this article.

Well, the answer is yes. It is reported that Buffett pays less taxes than his secretary, which has caused great controversy on the Internet. Although it was later proved that the news was untrue, Buffett's total tax payment was not less than his secretary's, but the tax rate was lower than his secretary's. This is also worthy of our consideration. Why do rich people earn so much money but enjoy lower tax rates?

In fact, it is too difficult to tax the top rich with high tax rate in real life. They may have a more elite tax planning team than the legislative team, and there are various tax avoidance methods, which limit our imagination.

When we study the history of taxation, we will find an interesting phenomenon. Taxes are accepted because people believe in Robin Hood's economic theory, that is, robbing the rich to help the poor. When the appetite for money is growing, the middle class will also be taxed, and the scope of taxation will continue to expand to the poor.

The rich see the opportunity, and real capitalists will use their financial knowledge to escape and avoid taxes with the help of company protection.

Many people who have never set up a company don't know this. A company is not necessarily a real entity. The company can be just a folder containing legal documents, which is registered and put in the lawyer's office.

A company does not necessarily mean that there are office buildings, factories and employees engraved with the company name. It can be just a soulless legal entity, protecting the wealth of the rich here.

After the income tax law was passed, the establishment of companies became popular, because the corporate income tax rate was lower than the personal income tax rate. In addition, some expenses of the company can be paid with pre-tax income.

Whenever people want to punish the rich, the rich will not sit still, but fight back. They are rich, capable and determined to change the status quo. They will never sit idly by and pay high taxes automatically. They will do their best to reduce the tax burden.

They hire smart lawyers and accountants, persuade politicians to amend the law and exploit the loopholes in the law. They have the ability to reverse the case for Gan Kun.

American tax laws allow people to avoid taxes in a reasonable way. Most people will use these methods, but in fact, only rich people will often use them because they care more about their own capital and career.

Whether it is high or not depends on their tax planner. If done well, it is only a small part of their income.

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