Is there any limit on the pre-tax expenses when the company pays temporary employees? What about the labor costs of our employees?

1. When an enterprise pays personal labor remuneration, it is only allowed to pay related expenses before income tax after the personal income tax has been withheld and remitted and the official invoice has been obtained.

Independent labor service providers are not individuals who have an employment relationship with the unit, and should pay value-added tax according to regulations and provide formal invoices. Individuals who are unable to issue invoices can do so in the form of tax authorities.

Article 20 of Chapter 4 "Management and Issuance of Invoices" of the Measures for the Administration of Invoices in People's Republic of China (PRC) stipulates that: units and individuals who sell goods, provide services and engage in other business activities receive money from outside, the payee shall issue invoices to the payer; Under special circumstances, the payer will issue an invoice to the payee.

2. The services provided by employees who have a labor contract relationship with the unit do not belong to the scope of value-added tax collection, and employees' wages can be issued and distributed without employees providing invoices for the unit.

According to the scope of value-added tax, the sale of services, intangible assets or real estate refers to the paid provision of services and the paid transfer of intangible assets or real estate, which belongs to the scope of value-added tax, except that employees employed by units or individual industrial and commercial households receive wages for services provided by their units or employers.

Extended data

1. When an enterprise pays labor remuneration, regardless of the amount, it should declare withholding and remitting personal income tax at the time of tax declaration. When an enterprise pays individual income tax, it needs to fill in the Individual Income Tax Detailed Declaration Form, with the item selected as "Labor Service" and the personnel selected as "Non-Company".

2. For the income that does not belong to the nature of production and operation, the personal income tax levied by the tax authorities is only used as the advance payment of personal income tax, and it does not exempt the enterprise from the obligation to withhold and remit personal income tax.

Baidu Encyclopedia-Notice on comprehensively promoting the pilot project of changing business tax to value-added tax