According to the Measures for the Administration of Pre-tax Deduction Certificates of Enterprise Income Tax (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.2018 No.28, hereinafter referred to as Announcement No.28), the expenditure items incurred by enterprises in China belong to VAT taxable items (hereinafter referred to as? Taxable items? ), the other party is a VAT taxpayer who has gone through tax registration, and its expenses are based on invoices (including invoices issued by tax authorities according to regulations) as pre-tax deduction vouchers; The other party is a unit that does not need to apply for tax registration according to law or an individual engaged in small-scale sporadic business, and its expenses are deducted before tax with invoices or receipts and internal vouchers issued by the tax authorities. The receipt shall include the name of the payee, personal name and ID number, expenditure items, the amount received and other relevant information. The judgment standard of small-scale sporadic business is that the sales of taxable items by individuals do not exceed the threshold stipulated by relevant VAT policies.

The construction enterprise subcontracts part of its business to? Private boss? , the construction services provided are taxable items of value-added tax, and those exceeding 500 yuan will be invoiced according to Announcement No.28.

Construction services belong to the taxable scope of value-added tax. Natural persons belong to small-scale taxpayers, and the simple tax calculation method is applicable, and the collection rate is 3%. The announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on supporting individual industrial and commercial households to return to work (announcement number: Ministry of Finance and State Taxation Administration of The People's Republic of China 2020 13) and the announcement of the Ministry of Finance and State Taxation Administration of The People's Republic of China on extending the implementation period of the tax reduction and exemption policy for small-scale taxpayers (announcement No.24 of the Ministry of Finance and State Taxation Administration of The People's Republic of China 2020) stipulate that from March 1 to February 12. Except Hubei Province, small-scale VAT taxpayers in other provinces, autonomous regions and municipalities directly under the Central Government collect taxable sales income at the rate of 3%, and collect VAT at the reduced rate of 1%.

The invoice shall be issued in the name of the project location. Item (3) of Article 46 in Annex/KLOC-0 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [20 1 6] No.36) stipulates that if other individuals provide construction services, sell or lease real estate, or transfer the right to use natural resources, they shall report and pay taxes to the competent tax authorities where construction services occur, real estate is located and natural resources are located.

According to Article 3 of Guo Shui Fa [1996] 127, individual industrial and commercial households engaged in construction and installation, construction and installation teams and individuals engaged in construction and installation projects without a business license, and construction and installation enterprises engaged in individual contracting after the industrial and commercial registration is changed to individual economic nature, their income from construction and installation industry shall be subject to individual income tax according to the items obtained by individual industrial and commercial households. Article 4 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China (Announcement No.61of State Taxation Administration of The People's Republic of China) stipulates that the taxable income declared by withholding individual income tax in full by all employees includes: (1) income from wages and salaries; (2) Income from remuneration for labor services; (3) Income from remuneration; (4) Income from royalties; (5) Income from interest, dividends and bonuses; (6) Income from property lease; (7) Income from property transfer; (8) Accidental income. According to document 6 1, operating income does not belong to the withholding scope of personal income tax.

When issuing invoices, the tax bureau will levy personal income tax on business income according to the examination and approval. In view of this situation, all localities adopt approved collection, and the collection rate shall be set by all localities themselves, and the local tax authorities shall be consulted for details. For example, since the publication of the Reply of Yunnan Provincial Taxation Bureau of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Personal Income Tax for Natural Persons Engaged in Temporary Production and Operation (August 13, 2020), if natural persons engaged in temporary production and operation within the administrative area of Yunnan Province cannot correctly calculate the taxable income when applying for invoicing, the invoiced amount (excluding value-added tax) is 65,438.