【赤字でOK】マイクロ法人の役員報酬の決めかた

Summary

This video provides a detailed guide on how to determine executive compensation for micro-corporations, focusing on tax-saving strategies. It explains how to balance compensation to minimize corporate tax while managing social insurance costs. The speaker suggests a minimum annual executive salary of ¥55,000 to optimize personal tax deductions. Practical examples and calculations illustrate how to manage income, expenses, and insurance to maintain zero profit and avoid taxes. The video also covers key rules for adjusting executive compensation and strategies for tax efficiency, offering valuable insights for micro-corporation owners.

Takeaways

• 😀 Executive compensation in a micro-corporation can be set freely, but it should be carefully considered to balance taxes and expenses.
• 😀 It's important to ensure that profits remain minimal (ideally zero) in order to avoid paying corporate taxes.
• 😀 The minimum recommended executive compensation is 550,000 yen annually, which helps avoid personal income tax due to salary deductions.
• 😀 If the company generates revenue through blogging or other means, the executive compensation should be adjusted to control profits and expenses.
• 😀 Even when income is low (e.g., 30,000 yen from asset management), the minimum compensation of 550,000 yen should still be set to avoid personal tax liabilities.
• 😀 Executive compensation can directly impact a company's profits, which in turn affects the need to pay taxes or incur losses.
• 😀 In case of low income, such as the example of 30,000 yen from asset management, creating a small deficit (loss) can be acceptable as it offers tax benefits like blue tax returns.
• 😀 Micro-corporations must follow certain rules for setting executive compensation, including making it regular and documented in meeting minutes.
• 😀 Within the first three months of setting up the company, compensation must be determined, and changes can only be made within the same period each year unless there are extreme circumstances.
• 😀 When deciding on executive compensation, consider whether to keep profits in the corporation or distribute them based on the individual’s income tax bracket. For individuals earning above 1.3 million yen, keeping profits in the corporation may be beneficial for tax reasons.

Q & A

What is the main purpose of determining executive compensation in a micro-corporation?

The main purpose is to control profits and minimize corporate taxes by setting executive compensation at a level that avoids leaving profits in the corporation, while also managing social insurance premiums.

Why is it recommended to set executive compensation at a minimum of ¥550,000 annually?

Setting executive compensation at least ¥550,000 ensures that salary income deductions are applied, which prevents personal taxes from being levied on the executive's income.

What is the significance of leaving no profits in a micro-corporation?

Leaving no profits means the corporation won't be required to pay corporate taxes. The goal is to match the expenses (including executive compensation and social insurance) with the income, so the corporation operates at a zero-profit level.

How do executive compensation and social insurance premiums affect a micro-corporation's profits?

Executive compensation and company-paid social insurance premiums are expenses that reduce the corporation's profits. Setting the compensation correctly ensures that profits are minimized or eliminated, avoiding the need to pay corporate taxes.

Can executive compensation be adjusted at any time in a micro-corporation?

No, executive compensation must be fixed and paid regularly. Any changes to the compensation can only be made within three months of the start of the fiscal year or in the event of significant business downturns.

What are the rules regarding changes to executive compensation in a micro-corporation?

Changes to executive compensation must be decided within three months of the corporation's establishment and again within three months of the beginning of each fiscal year. Additionally, the decision must be documented in meeting minutes.

What happens if the corporation's income is very low, such as ¥30,000 annually?

In such cases, it is still recommended to set the executive compensation at a minimum of ¥550,000. This allows the use of salary income deductions and avoids personal taxation, even though the corporation may be running at a loss.

What is the impact of retaining profits in a micro-corporation for individuals with higher incomes?

Individuals earning more than ¥1.3 million annually might benefit from retaining profits in the corporation because the corporate tax rate may be lower than individual tax rates. However, this strategy should be used cautiously and discussed with a tax professional.

How does the salary income deduction work for executive compensation of ¥550,000?

For compensation of ¥550,000, the salary income deduction allows for the deduction of the full ¥550,000, which reduces taxable income to zero, ensuring that no personal taxes are applied on the executive's compensation.

What is the advantage of being in a loss position for a micro-corporation?

Being in a loss position allows the corporation to apply for blue tax filing benefits and use the loss for carryforward deductions, offsetting future profits and reducing tax liabilities in the future.