How should labor subcontracting enterprises pay taxes when subcontracting the projects they undertake to other units?
According to the provisions of the tax law, enterprises should pay business tax and shadow tax in the place where labor services occur according to law. If an enterprise needs to subcontract all or part of the project to other enterprises or individuals for some reason after contracting the project, the enterprise shall pay taxes according to the total project price contracted by it, and the taxes on the subcontracted part shall be withheld from the subcontracted project funds. At the same time, the tax authorities have to pay a handling fee of 2% for withholding tax.