What is the core principle of flexible employment solutions?
Personal income on the platform is taxed based on personal business income, which is not the original labor remuneration tax rate and is even lower.
The enterprise sends the labor tasks to the platform, and at the same time sends the corresponding commissions and service fees to the platform. The platform issues a special VAT invoice to the enterprise. The special invoice can list the costs and deduct the VAT. At the same time, the platform distributes the tasks. To the individual operators on the platform, they complete the tasks, and at the same time, the platform issues commissions to the individuals, and the platform pays the personal tax to the tax bureau through collection.
At the same time, the tax bureau allows the platform to record invoices.
In general, the problem of tax non-compliance in the entire process has been solved, and both parties can comply with regulations and reduce costs, and operate the entire process online.
Next, let’s talk about the qualifications for flexible employment and temporary tax registration.
According to the announcement of the State Administration of Taxation on several matters concerning tax collection and administration, individuals engaged in production and operation who should apply for a business license but do not have a business license but have incurred tax obligations may apply for temporary tax registration in accordance with the regulations.
This is mainly applicable to flexible employees who receive commissions from temporary work but are unable to issue relevant invoices to corporate customers. They do not need to register for business registration through temporary tax registration and actually become market entities.
However, it should be noted that not every flexible employment platform has a temporary tax registration policy, so only some flexible employment companies have obtained relevant qualifications.
Note: Only for labor dispatch and human resources
