Do investors of law firms need to pay salary tax?

Do investors of law firms need to pay personal income tax?

If the investor works in a law firm, they need to pay wages. If the salary income exceeds the standard, they must pay personal income tax. .

(1) Calculation of monthly (quarterly) prepaid taxes

Amount of tax payable for the current period = accumulated tax payable - accumulated tax paid

Amount of tax payable = (Cumulative taxable income × tax rate - number of quick calculation deductions) × actual number of operating months ÷ cumulative number of actual operating months

Cumulative taxable income = (law firm accounting profit - make up for previous years' losses) × the investment lawyer's personal distribution ratio - deduction expenses × actual operating months in the year - other expenses allowed to be deducted

(2) Calculation of annual final settlement of taxes

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The investment lawyer’s year-end final settlement of tax payable = annual taxable income × tax rate – quick calculation deductions – annual prepaid taxes

Full-year taxable income = ( The increase in the tax adjustment of the law firm’s accounting profits - the decrease in the tax adjustment - making up for the losses of the previous year) How to calculate personal income tax and what is the tax rate

The proportional tax rate for personal income tax on shareholder dividends is 20%.

"Personal Income Tax Law of the People's Republic of China" 》Article 3, personal income tax rates:

(1) Comprehensive income, an excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached);

(2) Business income is subject to an excess progressive tax rate of 5% to 35% (tax rate table is attached);

(3) Interest, dividends, bonus income, property Income from leasing, income from property transfer and incidental income are subject to a proportional tax rate of 20%.

The "Personal Income Tax Law" stipulates that interest, dividends and bonus income are subject to personal income tax, and a proportional tax rate is applicable , the tax rate is 20. However, dividends received by individual shareholders from listed companies can be taxed at half the rate. Article 1 of the Ministry of Finance and the State Administration of Taxation's "Notice on Policies Concerning Personal Income Tax on Dividends" (Caishui [2005] No. 102) stipulates that, Dividends and bonus income received by individual investors from listed companies will be included in the personal taxable income at a temporary discount of 50%, and personal income tax will be calculated and levied in accordance with the current tax laws.

Investors of law firms need to pay wages Is there personal income tax? If the investors of the law firm are pure shareholders, do not work in the law firm, and have no affiliated positions, they definitely do not need to pay wages. But when there are dividends at the end of the year, the dividends they receive meet the relevant standards. Personal tax needs to be paid.