Currently, China's implementation of the personal income tax policy for labor income is mainly as follows:
Freelancers get paid for their labor, the payment unit withholding personal income tax, less than 20,000 part of the adaptation of the tax rate of 20%, more than 50,000 part of the adaptation of the tax rate of 40%,
Tax planning is not tax evasion and avoidance of taxes, is recognized at home and abroad as a reasonable way to save tax; all planning is the premise of changing the business model! is to change the business model as a prerequisite! A small change in the business model can have such a large incentive effect!
Related tax regulations
According to the Enterprise Income Tax Law and its implementing regulations and the Circular on Several Issues Concerning the Recognition of Enterprise Income Tax Income (Guo Shui Han [2008] No. 875), the regulations are organized as follows:
(a) Enterprises are entrusted with the processing of large-scale machinery and equipment, ships, airplanes, as well as engaging in construction, installation, assembly works or the provision of other labor services etc., which lasts for more than 12 months, the realization of revenue is recognized in accordance with the progress of completion or the amount of work completed during the tax year.
(2) If the results of the transaction of providing labor services can be reliably estimated at the end of each tax period, the enterprise shall adopt the progress of completion (percentage of completion) method to recognize the revenue from the provision of labor services.
1. The results of the transaction of providing labor services can be estimated reliably means that the following conditions are simultaneously met:
(1) the amount of revenue can be measured reliably;
(2) the progress of completion of the transaction can be determined reliably;
(3) the costs incurred and to be incurred in the transaction can be accounted for reliably.
2. The following methods may be used to determine the progress of completion of labor provided by an enterprise:
(1) the measurement of the work completed;
(2) the proportion of labor provided to the total amount of labor;
(3) the proportion of costs incurred to the total costs.
3. Enterprises shall determine the total amount of labor income in accordance with the contractual or agreed price received or receivable from the party receiving the labor service, and recognize labor income for the current period based on the total amount of income from the provision of labor services at the end of the tax period multiplied by the progress of completion minus the cumulative amount of income from the provision of labor services in the previous tax years; at the same time, the estimated total cost of the provision of labor services multiplied by the progress of completion minus the cumulative amount of recognized labor costs in the previous tax periods. At the same time, the amount after multiplying the estimated total cost of providing labor services by the progress of completion minus the cumulative cost of labor services recognized in previous tax periods is carried forward as the current cost of labor services.
(3) Tax recognition of specific types of labor income
1. Installation fees. Revenue should be recognized according to the progress of installation completion. Installation work is incidental to the sale of goods, installation fees are recognized in the recognition of revenue when the realization of the sale of goods.
2. Charges for promotional media. Revenue shall be recognized when the related advertisement or commercial practice appears before the public. Fees for the production of advertisements shall be recognized as revenue based on the progress of completion of the production of the advertisement.
3. Software fees. Fees for the development of software for specific customers shall be recognized as revenue based on the progress of completion of development.
4. Service fees. Service fees, which are included in the selling price of goods and are distinguishable, are recognized as revenue in installments over the period in which the services are rendered.
5. Fees for artistic performances, hospitality banquets and other special events. Revenue is recognized when the related activities occur. If the charge involves several activities, the amount received in advance should be reasonably allocated to each activity and recognized as revenue separately.
6. Membership fees. Revenue is recognized when the membership fee is obtained if the application for membership or joining membership allows only the acquisition of membership and all other services or goods are charged separately. If, after applying for membership or joining membership, a member receives various services or goods without paying for them during the membership period, or sells goods or provides services at a price lower than that of non-members, the membership fee shall be recognized as revenue in installments over the entire period of benefit.
7. Royalties. Royalties attributable to the provision of equipment and other tangible assets are recognized as revenue upon delivery of the asset or transfer of ownership of the asset; royalties attributable to the provision of initial and subsequent services are recognized as revenue when the services are provided.
8. Labor charges. Labor fees received for repeated services provided to customers over a long period of time are recognized as revenue when the related labor activity occurs.
Second, the provision of labor income tax difference analysis
"Accounting Standards" emphasizes the recognition of revenue to "the relevant economic benefits are likely to flow into the enterprise" criterion, for the economic benefits can not be expected to flow into the enterprise, the accounting from the point of view of the risk of considering, do not recognize the labor income; the tax law provides that This criterion is not emphasized in the tax law. Regardless of whether the economic benefits can flow into the enterprise or not, as long as the above three criteria are met, revenue shall be recognized and the market operation risk shall be borne by the enterprise. After recognizing the revenue according to the tax law, if the economic benefits fail to flow into the enterprise in the future, it can be regarded as "property loss" and applied for deduction before the enterprise income tax.