Those who are deem to be engag in “electronic services providing platform services” are calculat bas on a profit margin of 30%. That is, for every 100 yuan of Meta’s sales, 70% are presum to be expenses to be d uct , and only 30% of the profits are subject to tax.
Contribution 100%:
This is a relatively complex concept
In this case, it refers to the contribution of Meta’s transaction process to the total profit of the entire transaction process within the territory of the Republic of China. place advertisements and sell products to the Republic of China, Domestic customers, so the recognition by the IRS is 100%.
To sum up, assuming that the advertising cost is 100 yuan, 20% of the tax, which is 20 yuan, ne s to be withheld according to the original regulations. However, if it is calculat bas on a 30% profit margin and a 100% contribution, only the tax will be withheld in the end. The tax of 6 yuan is r uc by 14 yuan every time! However, this discount requires Meta’s parent company, Meta Platforms Ireland Ltd. (Ireland), to re-apply with the IRS every three years (please refer to the official document below).
Picture/Relevant description of official
documents from the National Taxation Bureau. (Content provid by: Accountant Xu Gengrui; Drawing: Financial Report Cloud.)
5. Meta withholding tax practice?
After a company launches Meta advertising, it ne s to declare bc data indonesia and pay the tax withheld within 10 days of paying the advertising fee by swiping a card. There are 3 key points to note:
1. Amount of declar income
As shown in the figure below, assume. That a general user when companies work on more wants to pay Meta NT$25,000 in advertising. Fees with a cr it card. For the IRS, the amount remitt by the user to Meta is the net amount of the withheld tax, so the real amount is. The total payment is 25,000 yuan ÷ 0.94 = 26,595 yuan, so the amount of withholding tax that should be. Report is Many people here uk data mistakenly believe that the withholding tax amount is 25,000 yuan × 6% = 1,500 yuan. Although the difference in the amount is not big. Over time, the underpaid taxes in the five-year core period may be paid by the IRS in one go. Additional penalties should be impos to remind everyone to pay attention.