What is the tax paid by labor subcontracting companies?

Labor subcontracting is more common in construction enterprises. Basically, it refers to the subcontracting of labor costs. The contractor shall pay 5% business tax and 1% individual income tax.

However, the individual income tax is related to local regulations, and the business tax rate of Jian'an enterprises is 3%, and the contracting entity is the withholding agent. There are relevant provisions in the tax law. The proportion of individual income tax is related to the tax bureau.

The withholding and collection vouchers of general contracting enterprises shall no longer duplicate the payment of business tax, urban construction and education fee surcharges.

The enterprise income tax shall be paid in advance on a quarterly basis at the location of the institution, and the year-end final settlement shall be settled.

If your company is subject to the approved enterprise income tax, it shall be calculated and paid according to the total income according to the income rate and the statutory tax rate of 25% approved by the tax authority, and shall be declared at the location of the institution.

Labor subcontracting is subject to tax. Enterprises that have obtained construction labor qualifications can undertake the labor operations subcontracted by enterprises with construction general contracting qualifications or professional contracting qualifications. However, labor subcontracting is actually a construction service, and the construction services provided by general taxpayers in the form of clearing contractors can choose to apply the simplified tax calculation method, and the collection rate of 3% can be applied to the silver year, or the general tax calculation method can be applied.

[Legal basis].

Article 15 of the Law of the People's Republic of China on the Administration of Tax Collection and Collection Article 15 Enterprises, branches established by enterprises in other places and places engaged in production and business operations, individual industrial and commercial households and public institutions engaged in production and business operations (hereinafter referred to as taxpayers engaged in production and business operations) shall, within 30 days from the date of obtaining the business license, apply to the tax authorities for tax registration with relevant certificates. The tax authorities shall register and issue the tax registration certificate on the day of receipt of the declaration. The administrative organs for industry and commerce shall regularly report to the tax authorities the status of registration and issuance of business licenses.

The scope and methods for tax registration by taxpayers other than those provided for in the first paragraph of this Article and withholding tax registration by withholding agents shall be prescribed by ***.

Labor subcontracting is subject to tax. Enterprises that have obtained construction labor qualifications can undertake labor services subcontracted by enterprises with construction general contracting qualifications or professional contracting qualifications. However, labor subcontracting is actually a construction service, and general taxpayers can choose to apply the simplified tax calculation method to calculate the construction services provided by the contractor, and the tax rate of 3% can be applied, or the general tax calculation method can be applied.

Article 29 of the Construction Law of the People's Republic of China The general contractor of a construction project may contract part of the contracted project to a subcontractor with corresponding qualifications; However, in addition to the subcontracting agreed in the general contract, it must be approved by the construction unit. In the case of general contracting, the construction of the main structure of the construction project must be completed by the general contractor itself. The general contractor of the construction project shall be responsible for the construction unit in accordance with the provisions of the general contracting contract; The subcontractor shall be responsible to the general contractor in accordance with the provisions of the subcontract.

The general contractor and the subcontractor shall be jointly and severally liable to the construction unit for the subcontracted project. The general contractor is prohibited from subcontracting the project to a unit that does not have the corresponding qualifications. It is forbidden for a subcontractor to subcontract the project it has contracted.

Legal Potato Chain Analysis:

Regardless of the form of the contracted work, you need to pay taxes. Contracted construction projects shall pay business tax at 3% of the taxi of business income. Labor subcontracting refers to the activities of a construction contractor or a professional subcontractor that contracts the labor work in the contracted project to a labor subcontractor with corresponding qualifications.

Subcontracting refers to the activities in which a construction unit or a professional subcontractor (both of which can act as the employer of labor operations) contracts the labor work of its contracted project to a labor subcontractor with corresponding qualifications.

Legal basis: Article 87 of the Civil Code of the People's Republic of China A legal person that does not distribute the profits obtained to investors, founders or members for the purpose of public welfare or other non-profit projects is a non-profit legal person. Non-profit legal persons include public institutions, social organizations, associations, social service organizations, and so forth.