The differences between the government employee system and the labor dispatch system are as follows:

1. Different regulatory authorities

The government employee system is approved and supervised by the China Banking Regulatory Commission, and stipulates that only Only leasing companies established with their approval can be named with the word cost.

The labor dispatch system borrows (short-term) funds from the financial market does not involve the issue of credit scale, but involves the funds or credit of public deposits. Therefore, the leasing transaction amount (in order to prevent the systemic risk caused by the long-term use of short-term funds ) should be included in the strict management of credit scale. Thus leasing companies are supervised as lending departments.

2. Different service targets

The government employee system is mainly suitable for daily consumption payments and transfers of individuals and families. Customers can complete real-time inquiries, transfers, online payments and remittance functions through personal online banking services. The emergence of personal online banking services marks the extension of banks' business reach directly to individual customers' home PC desktops. It is easy to use and truly embodies the style of home banking.

The labor dispatch system is mainly targeted at corporate customers such as enterprises and government departments. Enterprises and institutions can use corporate online banking services to understand the company's financial operations in real time, allocate funds within the organization in a timely manner, easily handle large batches of online payment and salary payment services, and handle letter of credit-related businesses.

3. Different fiscal and taxation policies

Government employees belonging to financial institutions can enjoy the policy benefits of the Ministry of Finance’s notice on the issuance of the "Administrative Measures for the Provision for Bad Debts of Financial Enterprises".

Because the labor dispatch system is not a financial institution, it cannot enjoy the above-mentioned benefits and "has to bear all the problems on its own." To obtain this treatment, you need to go to the tax department separately for approval.

4. Different types of taxes and fees paid

Taxes and fees paid by government employees include value-added tax, consumption tax, corporate income tax, resource tax, land value-added tax, and urban maintenance paid by enterprises in accordance with the law. Construction tax, real estate tax, land use tax, vehicle and vessel tax, education surcharge and other taxes and fees

The labor dispatch system includes mineral resource compensation fees, occupation tax and other taxes and fees, as well as taxes and fees before being turned over to the state. The enterprise collects and pays personal income tax, etc.

Baidu Encyclopedia-Labor Dispatch

Baidu Encyclopedia-Government Employee System