Goods tax and service tax are two taxes in China's consumption tax system. Goods tax is mainly aimed at enterprises that sell goods, and the collection standard is the sales amount of goods, and the tax rate ranges from 3% to 13%; Labor tax is mainly targeted at enterprises and individuals providing labor services, and the collection standard is labor remuneration, and the tax rate ranges from 3% to 20%. It should be noted that some specific goods or services may have different collection standards and tax rates. The basis of collecting goods tax and service tax is turnover or service fee, so it may be a heavy burden for many small and micro enterprises and individual operators. In order to reduce the burden of these taxpayers, China has also implemented a variety of relief policies, such as preferential policies for small-scale taxpayers, differential collection, zero tax rate, tax exemption and so on. In addition, there are still some problems in the process of collecting goods tax and service tax, such as unreasonable collection method and high tax rate. In view of these problems, the Chinese government has been actively exploring and reforming, such as implementing step-by-step collection, classified management and value-added tax reform.
The company I run only provides technical services. Do I need to pay labor tax? According to the Consumption Tax Law of People's Republic of China (PRC) and its related regulations, enterprises providing technical services should pay labor tax. But for some specific technical services, there may be different charging standards and tax rates. The specific situation also needs to refer to the provisions of the local tax authorities.
Goods tax and service tax are two taxes in China's consumption tax system. The collection standard is turnover or service fee, and the tax rate varies from place to place, usually 3%- 13%. In order to reduce the burden of some small and micro enterprises and self-employed, the government has implemented a variety of relief policies. The government has been exploring and reforming the problems existing in the process of expropriation.
Legal basis:
Article 21 of the Consumption Tax Law of People's Republic of China (PRC), units and individuals that sell goods or engage in paid services such as repair, appraisal, agency, contracting and information consultation. Goods tax or service tax shall be paid in accordance with regulations.