Tax law relationship

Only personal income tax is withheld by law. The income earner is the taxpayer, and the paying unit or individual is the withholding agent. The general understanding refers to the wages and salaries paid by the unit. Others are based on the actual needs of taxation departments, commissioning withholding and payment of sporadic and difficult-to-control tax sources, such as rural individual taxation, bazaars, and private house rentals. The entrusted withholding and payment is generally confirmed by the taxation department in advance, and the taxation can only be implemented after the signing of the taxation agreement.

Withholding process

The private labor fees paid by the company are not included in the withholding scope, because it also involves the collection of business tax, so the individual should apply to the tax bureau to issue labor invoices and pay the tax with his personal ID card and company payment certificate (stamped) Payment (about 8%), the company pays with the counterparty’s invoice and pays it before tax. Without an invoice, the tax cannot be prepaid.

Tax details

The provision of labor services is a taxable labor service, and business tax is levied according to regulations. Individuals who apply for invoicing must pay business tax 5% based on labor income, urban construction tax and education surcharge based on the business tax paid (regulations vary from place to place, but the total of the two items is generally around 0.5%), plus 2% of personal income tax. Around (regulations vary from place to place).