How much after-tax is a $5 million retainer fee

If in accordance with the provisions of the Individual Income Tax Act, intermediary fee of 5 million individuals need to pay personal income tax of about 2.23 million - 2.83 million between. However, the exact amount needs to be calculated according to the individual's specific situation.

According to the personal income tax law, personal income tax is calculated as follows: taxable income = total income - (expenses, donations and other special deductions + deductions). Among them, the deduction expenses refer to the monthly deduction standard and the deductions for children's education, continuing education expenses and so on. The specific amounts are as follows: 1. Monthly deduction standard: 5,000 yuan per month. 2. Children's education and continuing education expenses: 12,000 yuan per child per year. 3. Major medical expenses: deductions according to actual expenses. Therefore, if we assume that an individual with a $5 million residence fee has no other deductions, his or her taxable income is: $5 million - (5,000 * 12) = $4.4 million. According to the individual tax rate schedule calculated on a cumulative annual basis, the tax rate on the $4.4 million taxable income is 45% and the quick deduction is $148,065. Therefore, the individual's personal income tax would be approximately (440-160)*45% - 148,065 = between about $2.23 million and about $2.83 million. However, it should be noted that the exact amount of personal income tax actually needs to be calculated based on a combination of various circumstances of the individual, such as whether he or she has any other income and whether there are other deductible items.

What taxes should be paid if the intermediary fee is issued by a company? If the intermediary fee is issued by the company, it needs to pay enterprise income tax in accordance with the provisions of the Enterprise Income Tax Law. The intermediary fee refers to the fee paid by the company to the intermediary organization in order to facilitate the transaction, which can be deducted as expense deduction in the enterprise tax return. Meanwhile, if the intermediary fee involves value-added tax (VAT), it is also subject to the corresponding VAT.

Brokerage fees are subject to personal income tax under the Personal Income Tax Law. If the fee is issued by a company, the relevant corporate income tax and value-added tax also need to be considered. The exact amount needs to be calculated according to the individual's specific situation.

Legal basis:

Article 20 of the Law of the People's Republic of China on Individual Income Tax Resident individuals shall pay individual income tax according to law. The taxpayer shall be responsible for paying the tax by the individual who obtains the income or other units that pay the income.