What does the construction labor service company take as the input tax deduction?

What does the construction labor service company take as the input tax deduction?

Ordinary taxpayers can choose to apply the simple tax calculation method to the construction services provided by contractors.

Providing construction services in the form of contractors means that the construction party does not purchase materials needed for construction projects or only purchases auxiliary materials, and collects labor costs, management fees or other expenses.

Input tax.

For real estate acquired after May of 1, 2065438 and accounted as fixed assets in the accounting system, or real estate under construction acquired after May of 1, 20 16, the input tax will be deducted from the output tax in two years from the date of acquisition, with the deduction ratio of 60% in the first year and 40% in the second year.

Acquisition of real estate includes direct purchase, donation, investment, self-construction and debt repayment, excluding real estate projects developed by real estate development enterprises themselves.

The above two-year deduction does not apply to the input tax of real estate leased by finance and temporary buildings and structures built on the construction site. Labor costs cannot be deducted.

Input tax deduction

Input tax refers to the value-added tax paid or borne by taxpayers when they purchase goods, processing, repair and replacement services, services, intangible assets or real estate. Input tax = (purchased raw materials, fuel and power) * tax rate.

Subsidy deduction

According to the provisions of the tax law, the input tax allowed to be deducted from the output tax is limited to the value-added tax indicated on the following value-added tax deduction vouchers and the input tax calculated at the prescribed deduction rate:

1. Taxpayers purchase goods or taxable services and obtain the VAT amount indicated on the special VAT invoice from the seller.

2. Deduct the input tax at 10% of the price paid by the taxpayer to agricultural producers or small-scale taxpayers to purchase duty-free agricultural products and the price indicated on the purchase certificate approved by the tax authorities.

3. If duty-free grain is purchased from domestic grain purchase and sale enterprises, the input tax can be deducted at 10% of the ordinary invoice amount.

What does the construction labor service company take as the input tax deduction? The answer is as above. It should be noted that the deduction ratio is 60% in the first year and 40% in the second year. Labor costs cannot be deducted. Bian Xiao also gave you the answer to the licensing conditions of input tax deduction. This article is shared here. Thank you for watching.