When issuing invoices for labor expenses in the name of individuals, the personal income tax rate payable is 20%. If the service fee is less than 4,000 yuan, the tax allowance of 800 yuan can be deducted first; If it exceeds 4000 yuan, 20% of the expenses can be deducted as the exemption amount. If the one-time income is higher, that is, the taxable income exceeds 20 thousand yuan, an additional levy will be imposed. Specifically, the portion of taxable income between 20,000 yuan and 50,000 yuan will be levied 50% on the basis of the original calculated taxable amount; For the part exceeding 50,000 yuan, add 100%. In the name of individual industrial and commercial households or labor service companies, in addition to paying 25% enterprise income tax, business tax and surcharges are also paid, totaling 5.65%.
Tax rate classification of labor invoices:
1. General services: the tax rate is usually 3%;
2. Construction and installation services: the tax rate may be 3%, 9% or 1 1%, depending on the service content and contract provisions;
3. Transportation services: the tax rate is generally 9%;
4. Cultural and sports services: the tax rate is 3%;
5. Financial insurance services: the tax rate is 6%;
6. Modern service industry services: such as information technology and consulting management. , the tax rate is 6%;
7. Individual independent services: The tax rate is 20%, which is applicable to services provided by individual industrial and commercial households or freelancers.
To sum up, individuals need to pay 20% personal income tax when issuing invoices for labor expenses, and there are different exemption policies, and one-time high income also faces additional taxation; Individual industrial and commercial households or labor service companies pay 5.65% business tax and surcharges in addition to 25% enterprise income tax, which shows that tax policies have obvious differences in tax burden of different subjects.
Legal basis:
Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax
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VAT rate:
(1) Unless otherwise specified in items 2, 4 and 5 of this article, the tax rate of taxpayers selling goods, services, tangible movable property leasing services or imported goods is 17%.
(2) Taxpayers sell transportation, postal services, basic telecommunications, construction and real estate leasing services, sell real estate, transfer land use rights, and sell or import the following goods at the tax rate of 1 1%:
1. Agricultural products such as grain, edible vegetable oil and edible salt;
2 residents tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, dimethyl ether, biogas, coal products;
3 books, newspapers, magazines, audio-visual products and electronic publications;
4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;
5. Other goods specified by the State Council.
(3) Unless otherwise stipulated in Items 1, 2 and 5 of this article, the tax rate for taxpayers selling labor services and intangible assets is 6%.
(4) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(five) domestic units and individuals cross-border sales of services and intangible assets within the scope of the State Council, the tax rate is zero.
The adjustment of tax rate is decided by the State Council.