What is the tax rate for decoration design fee and what is the tax rate for design fee?

Among the decoration costs, there is an expenditure called "design fee" that has become a problem that netizens have been discussing! Some people do not understand this, thinking that the home improvement design fee should be included in the total decoration payment and should not be paid separately; There are also people who believe that the design fee is the embodiment of the value of the design, and since the designer proposes the idea, he should be paid accordingly. Free design is a myth.

However, there are still good designs, and some of my classmates have also participated in the exchange space, so I think it's better to use it as a reference and don't think too much about these issues.

The general decoration design will be within 3%-20%, and the designer's fee is also constantly charged according to the content you add, and there is another way to hire a professional design company, ranging from 1,000 yuan to 10,000 yuan.

Legal analysis: The income from the design fee shall be subject to business tax (5%) and additional taxes. The additional taxes and fees are paid on the basis of the actual payment of business holding tax, which are respectively urban maintenance and construction tax and education fee surcharge (3%).

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 1 This Law is enacted for the purpose of strengthening the administration of tax collection, standardizing the collection and payment of taxes, safeguarding state tax revenues, protecting the legitimate rights and interests of taxpayers, and promoting economic and social development.

Article 2 This Law shall apply to the collection and administration of all kinds of taxes levied by the taxation authorities in accordance with the law.

Article 3 The levy and suspension of taxation, as well as tax reduction, exemption, tax refund and tax compensation, shall be carried out in accordance with the provisions of the law; Where the law authorizes ***, it shall be implemented in accordance with the provisions of the administrative regulations formulated by ***.

No organ, unit, or individual may violate the provisions of laws and administrative regulations by making decisions on the establishment or suspension of tax collection, tax reduction, tax exemption, tax refund, tax compensation, or other decisions that contradict tax laws and administrative regulations.

Article 4 The units and individuals who are liable to pay taxes according to laws and administrative regulations are Duan Xiangxiang taxpayers.

Units and individuals that are required by laws and administrative regulations to withhold and remit, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay, withhold, collect and remit taxes in accordance with the provisions of laws and administrative regulations.

General VAT taxpayers engaged in decoration engineering business, the applicable VAT rate is 11%.

Decoration industry, calculated according to the income from the completion of decoration projects * 3% tax rate; as well as urban construction tax, education surcharge and local education surcharge; If the decoration labor service is provided, the turnover shall be recognized according to the income such as labor costs, management fees and auxiliary material costs actually collected from the customer (excluding the price of materials and equipment purchased by the customer), and no tax shall be paid if there is no income;

The income tax of this industry is 25%, which is paid quarterly, and the cost must be collected every month, and when the decoration project is completed, the proportion of income and cost of the decoration project will be carried forward.

Depending on what services you are providing for the renovation, if it is labor and installation, it is 9%.