How do law firm employees pay individual income tax

2022-07-02 0 By

Law firm as a special industry, its personnel including investment lawyers, partner lawyers, employees and part-time lawyers and other forms of employment mode, because of the different identity, and in the tax law, there are different ways to pay individual income tax.This paper will sort out and conclude the lawyers in different forms of practice.First, the investment lawyer in the National tax law [2000]149 is stipulated as follows:As of January 1, 2000, corporate income tax shall cease to be levied on the annual income from the operation of sole proprietorship or partnership law firms set up with the investment of lawyers. Individual income tax shall be levied on the income from the individual operation of the invested lawyers according to the relevant provisions and in accordance with the taxable items of “income from production and operation of individual industrial and commercial households”.In calculating his business income, the salary and salary of the contributory lawyer shall not be deducted.This policy is relatively early, stipulates that the sole proprietorship and partnership nature of the law firm investors, as the income of production and business tax.In fact, even if they do not know this policy, after the implementation of the new tax law after 2019, investors of sole proprietorship enterprises and natural person partners in the partnership will be required to pay individual income tax according to the “income from production and operation”.After 2016, few law firms can verify collection, even if there is verified collection, its taxable income rate shall not be less than 25%, so the original invalid policy will not be repeated.At the same time, the collection and administration of individual income tax of accounting firms, tax accountants’ firms, auditor’s firms and other intermediary institutions shall be handled in accordance with the relevant principles of law firms.When calculating the amount of taxable income, a partner’s lawyer shall deduct expenses in accordance with the Individual Income Tax Law and the relevant provisions on the basis of legal and valid evidence.Expenses borne by lawyers for professional training in accordance with the provisions of lawyers’ associations may be deducted according to facts.Employee Lawyer Employee lawyer shall pay individual income tax as “wage and salary income” based on the remuneration paid by the law firm.Employees as a law firm lawyers and law firms in accordance with the provisions of the proportion of revenue sharing, the charge of defray of the lawyers don’t burden to deal with the case (e.g., transportation, materials, communications and hired personnel etc.), the lawyer according to the provisions of the second paragraph of this article is divided into income for the month after deducting to deal with the charge of defray of the case, balance a merger with law firms to pay,Individual income tax shall be calculated and levied according to the taxable items of “wage and salary income”.Four, part-time part-time lawyer income wage or salary nature derived from law firms, law to withhold the individual income tax, no deduction of individual income tax law of expense deduction standard, with total (the income into the balance of the case for the deduction for expenses) directly determine the applicable tax rate, calculate the withholding individual income tax.A part-time lawyer shall, within 7 days of the following month, declare to the competent tax authority his or her wage and salary income from two or more sources for the combined calculation and payment of individual income tax.It should be noted that the wages obtained by part-time lawyers from law firms do not belong to labor remuneration income, but as wages and salaries income.Part-time lawyers refer to those who have obtained lawyer qualifications and lawyer practice certificates and are engaged in the profession of lawyers without leaving their own work.The remuneration paid by a lawyer in his own name to another person for his work shall be withheld and paid by the lawyer according to the taxable item of “income from remuneration for personal services”.For ease of operation, taxes may be paid to the State Treasury on their behalf by their law firm.