The difference between wages and labor costs, their respective advantages and disadvantages.

Income from wages and salaries: wages, salaries, bonuses, year-end salary increase, labor dividends, allowances, subsidies and other income related to employment or employment.

Income from remuneration for services: income from personal services, including design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, translation, peer review, painting and calligraphy, sculpture, film and television, audio recording, video recording, performance, advertising, exhibition, technical services, introduction services, brokerage services, agency services and other services.

value-added tax

Income from wages and salaries: employees employed by units or individual industrial and commercial households who provide wages for their units or employers do not belong to the scope of VAT taxation.

Income from remuneration for labor services: Units and individuals that sell or import goods or provide processing, repair and replacement services and taxable services within the territory of China are VAT taxpayers.