Some enterprises in the actual operation process will often encounter the situation of payment of personal service remuneration. For example, the air conditioner in your company is broken, so you can find someone online to repair it. For example, one of your friends introduces you to a business and needs to pay some commission to them. Our company often finds that there are many enterprises in similar situations, often due to the wrong understanding of tax treatment and accounting treatment, so that the company has to pay more taxes. Take a look!
misunderstanding1.The expenses paid to individuals, think that individuals can not invoice, do not invoice.
This perception is absolutely wrong. Individuals can go to the tax bureau to issue invoices. According to the provisions of Article 16 of the Measures for the Administration of Invoices of the People's Republic of China, units and individuals that need to use invoices temporarily may directly apply to the tax authorities of the place of operation for issuing invoices on the basis of the written proof of the purchase and sale of commodities, the provision or acceptance of services and other business activities and the identity certificate of the person handling the business. Where taxes are payable in accordance with tax laws and administrative regulations, tax authorities shall collect the taxes before issuing invoices. Tax authorities may, in accordance with the regulations of the competent tax authorities under The State Council, entrust other units to issue invoices on behalf of them.
misunderstanding2.The remuneration paid to individuals for labor service, thinking that the tax bureau has deducted the individual tax when issuing the invoice.
This is also a common misunderstanding. When an individual goes to the tax bureau to issue the invoice for service remuneration, the tax authority will not collect individual income tax in the process of issuing the invoice, and it will be written in the remarks column of the invoice that individual income tax is withheld and paid by the payer, which means that only value-added tax and other taxes are paid when issuing the invoice. Individual income tax is withheld and paid by the payer of the fee. If the payer, as the withholding agent, does not withhold individual income tax for individuals, it will be subject to administrative penalties. In accordance with Article 69 of the Law of the People's Republic of China on the Administration of Tax Collection, if the withholding agent should withhold the tax but fails to collect it or fails to collect it due, the tax authorities shall recover the tax from the taxpayer and impose on the withholding agent a fine of not less than 50 percent but not more than three times the amount of the tax not withheld or receivable.
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