Viewpoints
2021-04-21
Comparison for LLC and C-Corporation in California This article will compare the difference between California-Corporation and LLC from structure, registration requirements, and tax treatment. Structure Corporations Limited liability Companies No. of Shareholder/ Member At least 1 Shareholder At least 1 Member No. of Director 1 N/A Characteristics 1. Corporations are intended to provide limited liability; shareholders are generally not individually liable for the debts and obligations of the company. 2. Corporations are assessed corporate taxes on their own profits. Shareholders are taxed separately, if the company distributes dividends to them (or if it pays them a salary, in the case of employee owners). 3. Corporations are allowed to keep $250,000 in retained earnings without accumulated earnings tax. 1. LLCs are intended to provide limited liability for founders; moving liability for debts and obligations of the business from the entrepreneurs into the company itself. 2. LLCs offer […]
2021-04-21
China will Further Relax Market Access in Hainan The National Development and Reform Commission and the Ministry of Commerce of the PRC jointly released 22 special measures to further relax market access in Hainan Free Trade Port on 7 April 2021. The special measures mainly cover the following five sectors: Medical Sector (1) Establish an electronic prescription center in Hainan, prescription drugs can be sold over the internet via the center; (2) Encourage the first set of high-end medical equipment to be produced in Hainan; (3) Increase support for market access of drugs, qualified innovative drugs can be used directly once approved; (4) Fully relax access restrictions on Contract Research Organization (CRO); (5) Support the development of high-end medical beauty industry in Hainan; (6) Optimize the market access and development environment of transplantation science in all fields; (7) Establish a mixed ownership reform fund for the development of medical […]
2021-04-19
Work Arrangements of Dependant’s Pass Holders Dependant’s Pass (DP) is a relocation visa issue for legally married spouse or unmarried children under 21 years of eligible Employment Pass or S Pass holders. Work arrangement before 1 May 2021 DP holders who are dependants of Employment Pass, EntrePass or Personalised Employment Pass holders can apply for a Letter of Consent (LOC) to work in Singapore. Work arrangement on or after 1 May 2021 All DP holders who wish to work during their stay in Singapore will need an applicable work pass (such as an Employment Pass, S Pass or Work Permit) instead of an LOC, unless they are business owners who meet specified criteria. Existing DP LOC holders will be allowed to continue working until the expiry of their LOC. Employers will need to apply for an applicable work pass should they wish to continue […]
2021-04-19
U.S. Tax Deadline for Individuals Extended to May 17 On March 17, 2021, the Treasury Department and Internal Revenue Services announced that the federal income tax filing due date for individual for the 2020 tax year will be automatically extend from April 15,2021 to May 17, 2021. Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest, and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17. You do not need to file additional forms or call IRS to qualify for this automatic extension. Individual taxpayers who need […]
2021-04-19
Summary of Deduction Items and Standard for CIT in China(To be Continued) No. Deduction Items Standard of Deduction/Proportion of Limit Remark 1 Employee’s salary Aactual salary amount Employment, reasonable salary amount Additional 100% deduction Salary of disabled employees 2 Welfare 14% Gross salary of the employees 3 Employee’s education expenses 8% Gross salary of employees, the excess part can be carried forward in the following years Full amount Operator training fees for nuclear power generation enterprise Full amount Employee training fees for software enterprise 4 Labour union funds 2% Gross salary of the employees 5 Entertainment expenses MIN（60%，5‰） 60% of the acutal entertainment expense versus 5‰ of the sales revenue, the lower one is allowed to be deducted；The dividend, equity transfer income of equity investment enterprise can be calculated as sales revenue Advertisement expenses & propaganda expenses 15% Sales revenue of current year, the excess part can be […]
2021-04-19
Impact of Interrupting Social Insurance Payment in Shenzhen Basic social insurance benefits will be affeted (1) Unable to enjoy medical insurance benefits Shenzhen resident will be unable to enjoy medical benefits from the next month after stopping payment of social insurance.The accumulated payment period will be regarded as zero if stop the payment over 3 months, which also will affect the amount of hospitalization reimbursement. (2) Unable to enjoy maternity insurance benefits Maternity insurance refers to medical allowance offered to female employees during their preganent period as well as after childbirth, which shall be enjoyed after a full year payment of social insurance. Female employees are not allowed to enjoy the maternity insurance benefits if they fail to make one consecutive year of social insurance payment before delivery. (3) Individuals are not allowed to enjoty severe disease & employment injury insurance benefits if stop […]
2021-04-19
Comparison for LLC and C-Corporation in New York This article will compare the difference between New York-Corporation and LLC from structure, registration requirements, and tax treatment. And give you couple of examples of tax calculation for your reference. Structure Corporations Limited liability Companies No. of Shareholder/ Member At least 1 Shareholder At least 1 Member No. of Director 1 N/A Characteristics 1. Corporations are intended to provide limited liability; shareholders are generally not individually liable for the debts and obligations of the company. 2. Corporations are assessed corporate taxes on their own profits. Shareholders are taxed separately, if the company distributes dividends to them (or if it pays them a salary, in the case of employee owners). 3. Corporations are allowed to keep $250,000 in retained earnings without accumulated earnings tax. 1. LLCs are intended to provide limited liability for founders; moving liability for debts and […]
2021-04-19
Attention to the List Price for Taxable Goods or Services in Taiwan Business models and styles have been more diversified nowadays. No matter the business is run online or in physical stores, the list price of taxable goods or services should include business tax in it. However, some online stores claim that they do not include business tax in the list price and require an additional 5% business tax charge to their clients, which lead to consumption disputes. Taiwan National Taxation Bureau indicates that business tax is a kind of consumption tax. When a company is selling taxable goods or services, it should include the consumption tax in the selling price and collect it from the consumers. Therefore, according to the Value-added and Non-value-added Business Tax Act Article 32 Paragraph 2 and 3, the list price for taxable goods or services should include business tax. In other words, […]
2021-04-19
What is Tax Compliance Auditing There are three types of declaration method commonly used by Taiwan Companies: tax declaration reviewing on paper with a standard profit rate, ordinary declaration (general declaration) and tax compliance audit. The so-called tax compliance audit is the appointment of a certified public accountant(CPA) to audit and check the corporate income tax declaration form. Who needs Tax Compliance Auditing Company with losses when initially set up, but expected to have profits after 2 or 3 years The loss of the tax compliance audit year can be used to offset the profits for the next 10 years; for the surtax 5% on undistributed profit, if your company have tax compliance audit in the year of loss, it can be used to offset the surtax on profit in the future. In other words, the loss can not be used to offset the profit in the future […]
2021-04-19
What is Financial Report Auditing Financial report auditing is similar to tax compliance audit, but unlike that was based on the compliance with tax regulations to complete. Take small and medium enterprises as an example, according to the current regulations, the company have the following situations should conduct the financial report auditing: The company with actual capital more than TWD 30 million or reaching a certain scale; (“to a certain scale” means that the amount of capital does not reach TWD30 million but the net revenue is TWD 100 million; or the number of employees participating in labor insurance is 100 people.) Or the company that borrows more than TWD 30 million from financial institutions. Who needs Financial Report Auditing Those who meet the following conditions must apply for the financial report auditing: Capital Amount more than TWD 30 million (inclusive); Handle promissory note guarantee or borrowing more than […]