However, if the general contracting contract requires the general taxation method, the VAT rate is 1 1%.
According to Chinese laws, the contractor shall pay 5% business tax and 1% individual tax.
However, due to the different economic levels of specific places, the tax rate to be paid may be different, and the specific situation still depends on the local actual situation.
According to the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Further Clarifying and Comprehensively Pushing Forward the Deduction Policy of Labor Dispatching Services and Toll Roads in the Pilot Project of "Reform of Business Tax" (Caishui [2016] No.47) (hereinafter referred to as Caishui [2016] No.47) and Caishui [2016] No.36,
2. The general taxpayer chooses to pay the difference tax, and the total amount of the price and extra-price expenses obtained, after deducting the wages and benefits paid by the employer to the dispatched employees and handling social insurance and housing accumulation fund for them, is regarded as sales, and the value-added tax is calculated and paid at the tax rate of 5% according to the simple taxation method.
3. Small-scale taxpayers provide labor dispatch services, with the total price and extra-price expenses obtained as sales, and the value-added tax is calculated and paid at the rate of 3% according to the simple tax calculation method.
4. Small-scale taxpayers choose to pay the difference tax, and the total price and extra-price expenses obtained, after deducting the wages and benefits paid by the employer to the dispatched employees and handling social insurance and housing provident fund for them, are used as sales, and the value-added tax is calculated and paid at the tax rate of 5% according to the simple tax calculation method.
Extended data:
The difference between subcontracting and subcontracting: 1 Different objects.
The object of subcontracting is the project or partial project; Labor subcontracting only refers to the labor in the project.
In the case of subcontracting, the subcontractor will transfer all the contracted construction tasks to the subcontractor, including economic and technical responsibilities, management responsibilities and labor operation tasks in the construction tasks; In the case of subcontracting, the labor employer only subcontracts the labor tasks in the contracted construction project to the labor contractor.
2. The validity of the contract is different.
Subcontracting is an invalid act explicitly prohibited by laws and regulations; Labor subcontracting is a legal act and is not prohibited by law.
As mentioned above, Article 7 of the judicial interpretation clearly stipulates that labor subcontracting conducted according to law is legal and effective, which is different from subcontracting. As long as it is recognized as subcontracting, it is invalid.
3. The legal consequences are different.
Both parties to the subcontract shall be jointly and severally liable to the Employer for the quality or other problems arising therefrom; The subcontracting parties shall bear corresponding responsibilities for each other in accordance with the contract, and shall not bear joint liability for the employer.
In actual labor subcontracting, due to the non-simplicity of labor subcontracting, labor contractors and laborers are often managed and supervised by subcontractors to a certain extent, and their labor relations are complicated. When a labor dispute occurs at work, the rights and obligations of both parties are not clearly defined in advance, and labor subcontractors, labor contractors and laborers (workers) are often entangled. If labor relations and labor relations are clearly defined, unnecessary troubles can be avoided.
Labor contract and labor service contract are easily confused, and both of them are contracts based on artificial labor.
Labor contract is an agreement between citizens, legal persons and citizens and legal persons to provide labor services, while labor contract refers to an agreement between workers and employers to determine labor relations and clarify the rights and obligations of both parties, which is essentially different.