Run a profitable clothing store

Chapter 4 Clothing store opening preparations (4)
From the point of view of corporate tax burden, in the case of progressive tax rates, the tax burden borne by the enterprise is the lightest by using the average-year method, followed by the natural depreciation method (i.e., output method and working hour method), and the quick depreciation method is the worst.However, in the case of proportional tax rates, it is more beneficial for enterprises to adopt the accelerated depreciation method.Because the accelerated depreciation method can speed up the compensation of the cost of fixed assets within the service life, the enterprise has less profit in the early stage and pays less tax; in the later stage, the profit is more and the tax is more, thus playing the role of deferred tax payment.

my country's tax law and financial system stipulate that businesses can choose a specific depreciation method; the depreciation of fixed assets of foreign-invested enterprises is calculated using the straight-line method (that is, the annual average method). If other depreciation methods are required, the enterprise can submit an application and submit it to the State Taxation Bureau for approval. .Moreover, the minimum period for depreciation of various fixed assets has been clearly stipulated.

In actual work, in order to postpone the profit-making year of the enterprise, the enterprise adopts the method of shortening the depreciation period or leaving no residual value of fixed assets, increasing the depreciation rate and accelerating depreciation, so that the enterprise has less profit or losses in the initial stage of opening, so as to achieve the purpose of tax avoidance . 3. Use new products to avoid tax

If merchants want to use new products to avoid tax, they must first be familiar with the new product tax avoidance law.The new product tax avoidance law means that enterprises use the tax incentives that the state encourages new products to strive to make their enterprises meet the requirements of new product regulations, so as to enjoy the preferential tax treatment related to new products openly and achieve the purpose of tax avoidance.

According to the latest statistics from the National Statistics Department, the success rate of new products on the market is only about 5%.So how can we grasp the scale of launching products, how can we turn risks into high-efficiency benefits, and how can we make consumers favor your products more than others?Reasonable tax avoidance is one way!Especially the use of new products to avoid tax reasonably.

Definition of new product: According to the provisions of the State Administration of Taxation, a new product refers to the adoption of new technology principles, the development and production of new design concepts, or the obvious improvement in certain aspects such as structure, nature and technology compared with old products, thereby significantly improving product performance or expanding the use of functions. .New products are divided into national and regional levels.The former refers to new products developed and produced for the first time in China.The latter refers to the first new product developed and produced within a province, autonomous region, or municipality directly under the Central Government.

For long-term products that cannot be reduced or exempted under the unified national regulations, such as watches, bicycles, sewing machines, electric fans, motorcycles, refrigerators, toothpaste, etc., the scope of tax reductions and exemptions is limited to the first domestic production and listed in the State Science and Technology Commission, Development and Reform Commission New products in the trial production plan.

Preferential policies, according to the above documents, the specific preferential policies for new products are:

(1) Exemption from value-added tax for 3 years from the date of sale of trial products.

(2) New products included in the new product trial production plans of central ministries and commissions approved by the State Taxation Bureau, from the date of sale of trial products, the value-added tax shall be reduced or exempted for 1 to 2 years depending on the situation.

(3) After the tax exemption and tax reduction period expires in accordance with the above provisions, appropriate value-added tax reduction and exemption can be given.

(4) In order to encourage scientific research personnel to develop new products, the scientific research units can use the full amount of the value-added tax that meets the prescribed reduction and exemption for new product development.

(5) The income from the trial production of new products by scientific research units can be exempted from income tax within 1 to 2 years after being reported to the taxation authority for approval.

(6) Income from technology transfer achievements, technical consultation, technical services, technical training, technology shareholding, technology contracting, and technology export of scientific research units is temporarily exempt from income tax.

When a business avoids tax through new products, it mainly uses the above channels.Define tax avoidance through new products, that is, try to make this product a new product. If it is an out-and-out new product, of course you can enjoy preferential treatment, but if it is not approved by the relevant departments, you still cannot enjoy it.In addition, efforts should be made to keep the company's new products out of the list of non-preferential offers.Therefore, understanding non-preferential products and effectively avoiding them is also the key to tax avoidance.

Use tax incentives to promote store development
Tax preference is a means of market competition and regulation adopted by the state for specific transactions in specific industries and regions. It is a relatively reasonable way for the government to give priority to specific economic entities ( Investors) give back or give up a part of the tax revenue incentives or care measures.For merchants, it is a wise move to use preferential tax policies to promote the development of stores.This requires businesses to understand the relevant policies of tax incentives.The tax incentives stipulated in various tax laws of our country include tax reduction, tax exemption, export tax rebate and other contents.

(1) Tax reduction is a special provision to support or take care of certain taxpayers to reduce their tax burden.Generally divided into statutory tax reduction, specific tax reduction and temporary tax reduction in three ways.

(2) Tax exemption means that certain special taxpayers are exempted from all taxes of a certain (or several) taxes.Generally, there are three ways of statutory tax exemption, specific tax exemption and temporary tax exemption.

(3) Deferred tax payment is a special provision that appropriately extends the payment period for part or all of the tax payable by the taxpayer.

(4) Reinvestment tax rebate refers to the refund of the tax paid when a specific investor reinvests the profits obtained in the enterprise or a new enterprise.

(5) Tax exemption means that within a certain period of time, certain taxable items or taxable sources of taxpayers will not be taxed in order to exempt their tax burden.Including customs duty, excise tax exemption and income tax exemption etc.

(6) Investment credit means that the government allows taxpayers to offset part or all of the income tax payable according to the amount of investment for the encouraged investment projects in China.The implementation of investment credits is to encourage enterprises to invest and promote the adjustment of economic structure and industrial structure. Since 1999, the Chinese government has implemented the investment credit policy for technological transformation of domestic equipment.

(7) The threshold is to set a certain amount for the starting point at which the tax object starts to be taxed.If the tax object reaches the threshold, it will be taxed in full, and if it does not reach the threshold, it will not be taxed.The tax law sets thresholds for certain taxes.The determination of the threshold is mainly to take into account the tax incentives adopted by taxpayers with small business scale and low income.

(8) Exemption amount means that a certain amount is deducted from the total amount of the taxable object according to a certain standard, and the deducted part is not taxed, and only the excess part is taxed.

(9) Accelerated depreciation means that taxpayers who pay income tax are allowed to shorten the depreciation period and increase the depreciation rate according to the tax law to speed up the depreciation rate and reduce the current taxable income.

For newly opened stores, if they can make full use of preferential tax policies for development, they can reduce the cost of the enterprise and quickly grow bigger and stronger.After understanding the relevant provisions of the above tax incentives, merchants can use the tax incentive law to reasonably avoid taxes according to their own store conditions.

Law is the best weapon to protect yourself

Be sure to have relevant legal knowledge: Profound knowledge is the basic condition necessary for store creators.If you want to start a business, you must understand the basic legal environment of our country.We should be clear that our country is still in the primary stage of the socialist market economy, and there are still many traces left over from the planned economy in many fields. Expenses also occur from time to time.For shop owners, they should understand the legal knowledge related to opening a shop from the following aspects.

1. Understand the registration procedures
To set up a clothing store to engage in business activities, you must go through the registration procedures at the industrial and commercial administration department and obtain a business license. If you are engaged in business activities in a specific industry, you must obtain the approval documents of the relevant competent department in advance.

2. Business Administration Regulations
If you want to set up clothing, you also need to understand the "Enterprise Registration Management Regulations", "Company Registration Management Regulations" and other industrial and commercial management laws and regulations.

3. Local preferential policies
To set up a specific clothing store, you also need to understand the laws, regulations, and relevant local regulations related to development zones, high-tech parks, software parks (bases), etc., which will help you choose a business location to enjoy tax and other preferential policies .

4. Tax registration procedures
After the clothing store is established, you need tax registration and accountants to handle the finances, which involves tax laws and financial systems. You need to know what taxes the company needs to pay?Business tax, value-added tax, income tax, etc., you also need to know which expenses can be included in the cost, start-up expenses, how to amortize fixed assets, etc.

5. Labor contract
If you need to hire employees, which involves labor laws and social insurance issues, you need to understand labor contracts, probationary periods, service periods, trade secrets, non-competition, work-related injuries, pensions, housing provident funds, medical insurance, unemployment insurance and many other regulations .

6. Intellectual property rights
Only by understanding intellectual property rights can we ensure that we will not infringe on other people's intellectual property rights, but also establish our own intellectual property protection system. Therefore, shopkeepers also need to understand their respective protection methods such as copyrights, trademarks, domain names, trade names, patents, and technical secrets.

7. Common sense of civil law
In business, it is also necessary to understand basic civil and commercial laws such as the "Contract Law", "Guarantee Law", and "Negotiable Instrument Law" as well as laws and regulations on industry management.my country implements a statutory registered capital system. If the investment is not made in monetary funds, but intangible assets such as physical objects, intellectual property rights, or equity, creditor's rights, etc., it is also necessary to understand the relevant laws and regulations on capital contribution and asset evaluation.

The above is just a simple list of laws commonly used in entrepreneurship, and there will be a lot of legal problems in the actual operation of enterprises.Of course, you only need to have some basic understanding of these issues, and professional issues must be handled by lawyers.

Details to be paid attention to when signing a lease contract
The house lease contract is a commonly used contract type in real life. The house lease contract looks relatively simple and has relatively few contract clauses, but disputes over the house lease contract often occur.The fundamental reason is that the terms of the contract between parties A and B are not comprehensive, and some situations that were not originally considered often appear in the process of performing the house lease contract.In order to avoid disputes, store entrepreneurs should pay attention to the following issues when signing and performing a house lease contract:

(1) Calculation and payment of rent.The annual rent standard is generally fixed, but the two parties can also agree that the rent will be increased every year by a certain percentage or by a certain amount.The rent payment time shall be agreed upon by both parties, monthly payment, quarterly payment, or annual payment, but when agreeing on annual payment, both parties shall agree on the concept and start time of the year, otherwise, it may cause misunderstanding.

(2) Delivery of leased houses.The delivery date of the house should be stipulated in the contract.When the leased house is handed over, the two parties should agree to send a representative to the site to check the condition of the house. They should settle the previous water and electricity charges, communication fees, closed-circuit television fees and other related expenses, and sign the house delivery confirmation letter and the relevant property handover list.

(3) Whether the house area is accurate.It is often the case that the actual measured area after renting is less than the contract.In this case, the payment can be deducted according to the area of ​​the middle difference, and it is clearly stated in the contract.

(4) In the contract, clearly indicate which party shall pay all other expenses other than the rent, or share them in what proportion.

(5) Clearly indicate the start and end dates of renting and the specific payment methods for relevant expenses.

(6) Sign the lessor's handover list of various items.

(7) Indicate the meaning of the deposit.The deposit is generally a risk guarantee in the event of late payment of rent, non-payment, or damage to buildings and objects. After the contract period expires, if the above situations do not occur, the deposit must be returned to the lessee.

(8) It is necessary to indicate that natural disasters and irresistible factors cause direct economic losses and contract termination, etc., and the lessee does not need to be responsible for economic losses.

(9) Verify that the lessor is the real property owner.Although renting a house is a trivial matter, you must be careful in order to avoid being deceived or unnecessary disputes.Confirm whether the lessor is the landlord, and sign an effective rental contract to ensure nothing goes wrong.

(10) You should also pay attention to investigate whether the storefront has any legal disputes, whether it has been seized by the bank or the court or auctioned by other institutions, etc. You should try to avoid the storefronts that have disputes over leased property rights, or have disputes over property rights during the renting period.If it is an old store that is rented, you should ask whether it will be demolished in the future.If it is a new storefront, it is necessary to consider whether there are hidden construction quality problems in the storefront, so as to avoid quality problems in the storefront real estate in the future. When renting a new storefront, it is best to specify in the rental agreement who is responsible for the future maintenance of the real estate.

(11) Liability for breach of contract.The two parties should agree on how much liquidated damages should be paid to the other party if one party violates the relevant clauses of this contract, and the liquidated damages can also be agreed separately.It should also be noted that if one party breaches the contract halfway, resulting in the contract being terminated in advance, how to deal with the property and loss of the lessee's decoration must also be stipulated in the contract.

If the asking price of the store is significantly lower than the general market rent, then you should also be vigilant. It may be that there is a problem with the property rights of the store (or the creditor's rights of the store).

(End of this chapter)