1. How should individual contractors issue invoices?
Individual contractors in the construction industry need to issue invoices to the tax bureau where the engineering service is located. There are two common types of invoices when the tax bureau issues invoices on behalf of them:
(a) according to the "labor remuneration" billing.
Some people think that invoices should be issued according to the taxable items of "labor remuneration", and the words "personal income tax is withheld or withheld by the payer" should be automatically generated in the "remarks column" of the invoice;
(two) according to whether to obtain a business license to judge the billing.
It has been suggested that whether or not a business license has been obtained shall prevail: if there is no business license, the income obtained shall be the income from remuneration for labor services; If a business license is obtained, the income obtained is business income.
Friends! Please note that both of the above are wrong operations!
The above-mentioned wrong practices lead the construction enterprises or labor service companies to withhold and remit at least 20% of the personal income tax according to the Individual Income Tax Law of People's Republic of China (PRC) and its implementing regulations when paying the contractor's labor remuneration.
That is to say, the problems encountered by the friends of Tao Ge's contractor, in fact, the other party's finance has not yet figured out whether to invoice according to labor remuneration or operating income.
Two. How to define "operating income" and "labor remuneration income"
(1) Income from remuneration for labor services
According to Item (2) of Article 6 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China:
Income from remuneration for services refers to personal income from services, including design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consultation, lectures, news, broadcasting, translation, peer review, painting and calligraphy, sculpture, film and television, audio recording, video recording, performance, advertising, exhibition, technical services, introduction services, brokerage, etc.
(2) Operating income
According to Item (5) of Article 6 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China:
Operating income refers to the income obtained by individuals engaged in production and business activities through individual industrial and commercial households, sole proprietorship enterprises and partnership enterprises registered in China; Income obtained by individuals who have obtained licenses according to law and engaged in paid service activities such as running schools, medical care and consulting; Income from individual contracting, leasing, subcontracting and subletting; Income obtained by individuals from other production and business activities.
Obviously, the migrant workers led by the contractor are engaged in a professional job service, and the income they get from the labor service company does not belong to the income of "labor remuneration", but belongs to the category of "operating income", which has nothing to do with whether or not they obtain a business license.
3. Method for natural persons to obtain "operating income" and issue invoices on behalf of the tax bureau.
Individual contractors are natural persons, and when the income obtained is invoiced by the tax bureau, the specific invoicing methods are as follows:
(a) when issuing invoices on behalf of the tax bureau, a certain proportion of personal income tax must be levied according to the invoiced amount excluding value-added tax and the local provincial tax bureau;
(2) When the tax bureau issues invoices on its behalf, it is required to fill in "construction service-engineering service" or "construction service-tower crane service (steel structure service, curtain wall glass service, water and electricity installation service, plastering service)" in the tax classification coding column of the invoice, and indicate "city, county (district) and project name where the project is located" in the remarks column of the invoice.
(3) When the construction labor service company receives the invoice issued by the contractor or the team leader, it shall issue the full value-added tax invoice to the contractor in accordance with the provisions on differential taxation, and levy the value-added tax according to "(the labor service company collects all the extra expenses of the contractor-the amount of professional subcontracting of the contractor) ÷( 1+3%)×3%".
Four. How to deal with contractor project accounting?
The contractor is subcontracted, and the value-added tax is calculated and paid according to the difference tax method. Let's learn together through the following examples.
Example A Company's construction labor engineering cost (including tax) 1 10,000 yuan, subcontracted project 200,000 yuan, special invoice for purchasing materials, and input tax of 60,000 yuan. This project adopts simple tax calculation. The accounting treatment of Company A is as follows:
Invoice issuance: issue VAT invoices at the place where the institution is located, and issue special VAT invoices with the tax rate of 3% according to the total price and off-price expenses 1 10,000 yuan;
Debit: bank deposit, etc. 1,000,000.
Loan: project settlement is 970,873.
Taxes payable-simple tax 29, 127
Pay 200,000 yuan for the subcontracted project;
Borrow: project construction 194, 175.
Taxes payable-simple tax 5,825
Loan: 200,000 yuan from the bank.
This example was also introduced by teacher Zhang when sharing the knowledge points of simple expropriation. For the knowledge points related to simple collection, friends can review the next article:
You can reduce the tax rate without investment! Construction industry, labor dispatch can be! See if your company can do this.
Verb (abbreviation of verb) personal income tax treatment of contractors
Personal income tax shall be levied on the income obtained by the contractor from contracting various engineering operations in the construction and installation industry according to different situations:
According to the provisions of Article 3 of the Interim Measures for the Administration of Individual Income Tax Collection in Construction and Installation Industry (Guo Shui Fa [1996] 127No.), individual income tax shall be levied on the income obtained by contractors who contract various engineering operations in construction and installation industry according to the following circumstances:
(1) The income from the operating results owned by the contractor personally, or the part of the operating results owned by the contractor personally retained in accordance with the provisions of the contract (agreement), shall be taxed according to the income items obtained from contracted operation and lease operation of enterprises and institutions; Income obtained through other modes of distribution shall be taxed according to the items of income from wages and salaries.
(2) Individual industrial and commercial households engaged in the construction and installation industry, construction and installation teams and individuals engaged in construction and installation projects without obtaining a business license, and construction and installation enterprises that are changed into individual economic properties after industrial and commercial registration shall pay personal income tax on their income from the construction and installation industry.
(three) the income obtained by other personnel in the construction and installation industry engaged in engineering operations shall be subject to individual income tax according to the items of wages, salaries and remuneration for labor services.
Personal income tax treatment of migrant workers with intransitive verbs
(1) If the contractor issues a labor service invoice to the tax bureau where the project is located, the construction enterprise will enter the cost with the general VAT invoice issued by the contractor at the tax bureau, and the wages of migrant workers will be paid by the contractor. Individual income tax of migrant workers often needs to be approved and collected, which will be borne by the contractor and withheld and remitted to the tax bureau where the project is located according to law.
(2) If the contractor fails to issue labor service invoices on behalf of the tax bureau where the project is located, both the migrant workers and the contractor are employees of the construction enterprise, and the construction enterprise must declare personal income tax in full to all members of the tax bureau where the project is located according to law, or collect personal income tax in accordance with the provisions of the local government.
That is to say, if an individual contractor can't provide complete financial and accounting information, it shall verify its taxable income or tax payable, and the personal income tax shall be withheld and remitted by the construction service unit.
Summing up thinking
Mr. Zhang's friend meets the requirements of contracting engineering business as a natural person. The money he got from employment does not belong to "income from labor remuneration", but belongs to "income from other production and business activities", that is, it belongs to the category of "operating income". He will invoice the tax bureau according to "business income", and the tax item of the invoice is "construction services-engineering services".
The personal income tax rate table for business income is applicable to the personal income tax payable for business income, and the tax rate is 5% ~ 35%; Income from labor remuneration is subject to the comprehensive income tax rate table, and the tax rate is 3%~45%.