(3) Invoices can be issued in the form of operating income (contracted and leased operation) in the name of the individual project contractor to the tax bureau.
The biggest advantage of the general tax method is that the input tax amount can be deducted.
Therefore, the individual income tax declaration of the construction industry can be verified and collected according to the location of the construction project and the total amount of the project, and there is no need to make a detailed declaration of full withholding to the tax bureau.
When paying the labor cost to the project contractor, go to the tax authority to issue an invoice in the name of the self-employed industrial and commercial household.
Compared with the verified collection, the project pays less individual income tax, and the local competent tax authority where the project is located shall not verify the collection of individual income tax.
(2) The project contractor is registered as a self-employed business.
According to the Decree of the Ministry of Human Resources and Social Security of the People’s Republic of China (No.
Generally, there are several ways to pay labor costs: (1) Pay directly according to the payroll, and report in full.
However, this form may involve risks such as income tax and social security of rural migrant workers in the future.
The proportion of VAT is as follows: VAT: 30% – 70% of the local retained (50% of the local retained) corporate income tax will be returned to the local retained (40% of the local retained) corporate income tax incentives will be returned to the local retained (40% of the local retained) 30% – 70% of the “general tax” and “simple tax” in bidding How to choose the 01 tax method in actual bidding work, for construction enterprises, “General tax calculation: 9% vs.” simple tax calculation “: 3%.
03 Labor subcontracting mode It is also common for construction enterprises to sign construction labor contract with individual contractors in the construction industry.
The workers form a service relationship with the company.
In the case of verified collection, the tax authorities have no way to verify the social security of migrant workers because the migrant workers’ wages have not been fully declared.
In principle, the payroll is disbursed according to the facts, and the tax bureau may not be able to verify if there are differences.
For example, it is a reasonable and legal tax saving way to register the company in the Economic Development Zone to enjoy financial incentives, verified collection and other tax preferences.
On the premise of real business, the establishment of sole proprietorship in the Economic Development Zone will enjoy preferential local tax policies.
03 When the input of materials is 13%, it is further converted into the input tax of materials (taking the 13% tax rate as an example): the total price tax of materials/(1+13%) * 13%=5.35% A=the total price tax of materials/A=46.52% (1) When the proportion of materials in the total contract revenue=46.52%, both methods can be selected.
If the amount does not exceed 100000 yuan per month, VAT can be exempted.
(3) When the proportion of materials in the total contract revenue is less than 46.52%, the simple tax method is selected..
Which one should we choose? Let’s see a comparison: general tax calculation method: VAT payable=contract amount A/(1+9%) * 9% – input tax amount=8.26% A – simple tax calculation method of input tax amount: VAT payable=contract amount A (1+3%) *3%=2.91% A02 Assumptions for the selection method: general tax method=simple tax method 2.91% A=8.26% A-input tax amount input tax amount/A=5.35%.
Invoicing in the finance and taxation class is risky, and tax payment should be cautious! In the construction industry, there is usually a lack of a large number of input bills and the tax burden is heavy, so it is particularly important to choose a reasonable and legal way to do tax planning and reduce the tax burden of enterprises! Today’s finance and tax class will show you the following points of tax planning in the construction industry! Construction industry personal tax declaration and social security planning 01 Verification and collection Construction workers need to change their operation areas frequently because of the project location, so it is difficult to achieve full declaration of personal tax for all employees.
Therefore: (1) When the proportion of the input tax amount to the total income of Taiwan=5.35%, both methods can be selected.
(2) When the proportion of the input tax to the total contract income is more than 5.35%, choose the general tax method.
After verification, the individual income tax rate of small-scale sole proprietorship will be 0.5% – 2.1%, the general taxpayer will be 0.5% – 3.1%, the value-added tax will be 3% or 1%, the additional tax will be 6%, and the comprehensive tax rate will be as low as 3%.
(2) When the proportion of materials in the total contract revenue is more than 46.52%, the general tax method is selected.
Make good use of the preferential tax policies of local governments At present, Shanghai, Chengdu and other governments have issued a series of preferential tax policies to promote the development of local economy.
Invoices shall be issued in the name of individual industrial and commercial households when payment of labor remuneration is made.
According to the State Administration of Taxation Announcement No.
According to the regulations of the State Administration of Taxation, from January 1, 2019, salaries, remuneration for labor services, remuneration for authors and royalties shall be regarded as comprehensive income for final settlement and payment of individual income tax.
02 Collection on account audit In some projects, such as hoisting, the number of workers is not large, which is convenient to choose the method of collection on account audit that is declared in full details by all employees.
Where full withholding declaration is carried out for all employees, the local tax authority where the project is located shall not verify the collection of individual income tax.
(3) When the proportion of the input tax to the total income of Taiwan is less than 5.35%, choose the simple tax method.
10), construction enterprises can calculate and pay work-related injury insurance premiums based on a certain proportion of the total cost of the project, with the construction project as the unit.
52 (2015), the trans provincial and non local construction units shall apply to the local tax authorities for detailed declaration of full withholding of all employees in respect of the wages and salaries of the project operators they have paid.