1, labor remuneration

Income from remuneration for labor services refers to the income obtained by individuals from engaging in labor services, including design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, translation, peer review, painting and calligraphy, sculpture, film and television, audio recording, video recording, performance, advertising, exhibition, technical services, introduction services, brokerage services, agency services and

2. Operating income

The operating income in the new tax law regroups the income from production and operation and the income from contracted operation in the old tax law and classifies them into four contents:

(1) Income obtained by individuals engaged in production and business activities through individual industrial and commercial households, sole proprietorships and partnerships registered in China;

(2) Income obtained by individuals who have obtained licenses according to law and engaged in running schools, medical care, consulting and other paid service activities;

(3) Income from individual contracting, leasing, subcontracting and subletting;

(4) Income obtained by individuals from other production and business activities;

What is the difference between labor remuneration and business income invoicing?

If the business income is an individual industrial and commercial household or a sole proprietorship enterprise with a business license and tax registration, of course, it will be invoiced by itself. If it is an individual who temporarily engages in business activities without a license, it needs to be invoiced by the tax authorities. Of course, the labor remuneration also needs to be invoiced by the tax authorities. The question is what is the difference between the two invoicing?

1, VAT

Value-added tax is usually paid at the rate of 3% for both labor remuneration and business income, but in either case, special invoices can not be issued on behalf of them;

2. Personal income tax

Since labor remuneration is subject to withholding obligation, business income is not subject to withholding obligation. Since 20 18, many tax authorities have made clear provisions on the invoicing of these two issues. In most places, it is stipulated that labor remuneration will not be taxed, but will be withheld by withholding agents. Since there is no withholding agent, the business income shall be approved and collected by the tax authorities. A typical example is Jiangxi:

Announcement of Jiangxi Provincial Taxation Bureau of State Taxation Administration of The People's Republic of China on Relevant Issues Concerning the Verification and Collection of Individual Income Tax on Operating Income

Announcement No.4 of Jiangxi Provincial Taxation Bureau of State Taxation Administration of The People's Republic of China on 20 19

5. When a natural taxpayer who has not gone through the tax registration obtains business income (except withholding agent) from his temporary production and business activities, he shall pay personal income tax in advance according to the invoiced amount (excluding VAT) 1.3%.

6. If the natural taxpayer needs to invoice the income from labor remuneration, royalties and royalties on his behalf, no personal income tax will be levied in the process of invoicing on his behalf. The withholding agent shall withhold the personal income tax in advance (or withhold and remit it) and handle the full amount of the withholding in accordance with the Administrative Measures for the Declaration of Personal Income Tax Withholding (Trial) (State Taxation Administration of The People's Republic of China Announcement No.618).

What is the difference between enterprise's withholding and income from production and operation? According to our introduction, we can know that the wages and salaries earned by employees in enterprises belong to the personal income tax, and the personal income tax is withheld and remitted by enterprises. For the specific difference between the two, you can refer to the relevant introduction in our article above.