First of all, among part-time employees, there should be little objection to this issue. According to the relevant provisions of the "Reply of the State Administration of Taxation on the Calculation and Collection of Personal Income Tax on Income from Individual Part-time Jobs and Retirees' Re-employment" (Guo Shuihan [2005] No. 382), income from individual part-time jobs should be treated as "income from labor remuneration". Pay personal income tax on tax items.
In other words, For part-time employees, the employer withholds personal income tax based on "labor remuneration".
So, for full-time employees, of course, personal income tax is usually withheld (withheld and paid in advance) according to "wage and salary income". But is it possible to withhold personal income tax based on “remuneration for labor services”? Please see the relevant reply from the Shenzhen Taxation Bureau.
Question content (excerpt and arrangement): If a company provides consulting services in an individual’s name (not in the name of a self-employed person), can the income obtained be taxed as income from production and business operations? (message time: 2019-05-25)
State Administration of Taxation Shenzhen Municipal Taxation Bureau 12366 call center reply (excerpted, organized): (reply time: 2019-06-04)
The comments mentioned in the consultation questions are in personal names ( If the individual (not in the name of a self-employed person) undertakes consulting services from the company, if the individual has a labor-employment relationship with the company and does not sign a separate consulting service contract with the company, the income obtained shall be subject to individual tax according to the salary income item; if If a consulting service contract is signed separately, the income obtained will be taxed as labor remuneration income.
Attachment 1: Director’s Fees Personal Income Tax Policy
(1) If an individual serves as a director or supervisor of a company and is not employed or employed by the company, the director’s fees shall be calculated and withheld as personal income tax based on labor remuneration income.
(2) If an individual holds a position or is employed by a company (including affiliated companies) and concurrently serves as a director or supervisor, the director's fee and supervisor's fee should be combined with the personal salary income, and personal income tax should be paid uniformly based on the salary and salary income items.
Appendix 2: Personal Income Tax Policy for Retirees Re-employing
The income obtained by retirees who re-employ, after deducting the expense deduction standards stipulated in the Personal Income Tax Law, is subject to personal income tax as a taxable item of "wage and salary income".
Appendix 3: Special policies for interns
"Announcement of the State Administration of Taxation on Improving and Adjusting the Withholding and Prepayment Methods of Personal Income Tax for Some Taxpayers" (State Administration of Taxation Announcement No. 13, 2020) Article 2: Those who are receiving full-time academic education If a student obtains labor remuneration due to internship, the withholding agent may withhold and prepay personal income tax in accordance with the "Announcement of the State Administration of Taxation on the Issuance of the "Personal Income Tax Withholding Declaration Management Measures (Trial)" (2018 No. 61 ) to calculate and withhold prepaid taxes using the cumulative withholding method specified in the Act.
Appendix 4: Wage and salary income and labor remuneration Income tax law definition
(1) Wage and salary income refers to the wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies and other things that an individual obtains due to his or her employment. Other income related to employment or employment.
(2) Income from labor remuneration refers to the income obtained by individuals engaged in labor services, including design, decoration, installation, drawing, laboratory testing, medical treatment, law, accounting, consulting, lecturing, translation, review, calligraphy, painting, engraving, Income from film and television, audio and video recordings, performances, performances, advertising, exhibitions, technical services, introduction services, brokerage services, agency services and other services.
Appendix 5: "Guo Shui Fa [1994] No. 89" document on the distinction between wages and salary income and labor remuneration income
Wages and salary income belong to non-independent personal labor activities, that is, in agencies, groups, schools, military units, enterprises The remuneration received from serving and being employed in public institutions and other organizations; income from labor remuneration is the remuneration obtained by individuals independently engaging in various skills and providing various labor services. The main difference between the two is that the former has an employer-employee relationship, while the latter does not.
In addition, regarding the wages of temporary workers, you can check "Are temporary workers paid according to wages? Do they need to pay social security?" The latest reply is here" article.
