Must-see! Summary of tax-saving measures for sole proprietors-The last chance of tax-saving at the end of the year --- INTERNET Watch
First of all, the calculation method of income tax is the basis. If you don't understand this, tax savings will not start. The formula for calculating income tax is as follows.
Income tax formula.To know the amount of tax payment, you need to know the sales, expenses, and various income deductions.Sales are one year's sales = annual sales from January to December. Be careful of sales over the years. For example, the sales delivered in December, invoiced, and deposited at the end of January of the following year will be the sales of this year.
Similarly, if you purchase with a credit card at the end of the year, the withdrawal will be the expense of this year even in February. The expenses can be various expenses required for the business. If you are writing a manuscript on a personal computer, you will also have to pay for the purchase of the personal computer, electricity, internet connection, and repairs. Income is calculated by subtracting expenses from sales.
Most of the various income deductions are for individuals. Typical deductions are basic deductions, spouse deductions, dependent deductions, social insurance deductions, life insurance deductions, medical expenses deductions, etc., and most of the deductions are common to office workers.
Taxable income is income minus various income deductions. The amount of income tax can be calculated by multiplying this taxable income by the tax rate.
Conceptual diagram of income tax calculationLet's take a look at the tax rate. The tax rates for income tax are shown in the table below.
Income tax rate tableLooking at the table, the tax rate rises from 5% to 45% depending on the amount of taxable income, but when the taxable income goes from 1.95 million yen to 1.96 million yen, the tax payment amount does not suddenly double. The tax rate is not applied to the entire taxable income. For example, if the taxable income is 3.5 million yen, 5% of the portion up to 1.95 million yen, 10% of the portion exceeding 1.95 million yen and 3.3 million yen, 3.3 million yen. The total amount of tax payment is the sum of 20% of the excess of 3.5 million yen. Let's actually calculate.
Income tax of taxable income of 3.5 million yen
1.95 million yen x 5% = 97,500 yen ① 1.35 million yen (3.3 million yen-1.95 million yen) x 10% = 135,000 yen ② 200,000 yen (3.5 million yen-3.3 million yen) x 20% = 4 10,000 yen ③
① ＋ ② ＋ ③ ＝ 97,500 yen ＋135,000 yen ＋40,000 yen ＝ 272,500 yen
Will be. You can easily calculate using the deduction amount on the right side of the tax rate table.
Taxable income amount x tax rate-deduction amount = tax payment amount
3.5 million yen x 20% -427,500 yen = 272,500 yen
It is not necessary to be nervous at the borderline where the tax rate rises, but I would like to recognize that the higher the tax rate (= higher taxable income), the higher the tax saving effect. If a person with taxable income of 3.5 million yen increases expenses by 200,000 yen, 20% of the increased expenses = 40,000 yen tax savings, but for a person with taxable income of 3 million yen, the cost of 200,000 yen is 10 % = Only 20,000 yen tax savings.
People with taxable income of 1.95 million yen or less do not need to actively save taxes. Income tax for the year will decrease if expenses are increased at the end of the year, but income tax for next year will decrease if expenses for the beginning of the year are increased. It is the same if calculated throughout the two years, so what is required for people with taxable income of 1.95 million yen or less is to "increase sales = earn more".
If you understand the formula for calculating income tax, you should be able to understand how to reduce the amount of tax payment (= tax saving).How to reduce tax payments
1. 1. Reduce sales 2. Increase expenses 3.Increase various income deductions
However, reducing sales is not a desirable method, so "increasing expenses" and "increasing deductions" are the basics of tax savings.
"Increasing expenses" and "increasing deductions" are the basics of tax savingsSince the tax rate of inhabitant tax is almost uniform 10% nationwide, a simple calculation is that if you increase expenses by 100,000 yen, taxable income will decrease by 100,000 yen, and that 10% (tax rate) = 10,000 yen will be saved. The formula for national health insurance differs for each municipality, and even in the same municipality, the coefficient changes frequently (every year in Nagoya, where the author puts a resident card). In addition, insurance premiums are more than doubled depending on the municipality (= municipality where you live). To get an accurate picture of the benefits of tax savings on insurance premiums, check the website of your municipality for the calculation method. Resident tax and national health insurance go up and down in tandem with income tax, so focusing on reducing income tax should lead to good results.
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