Core Viewpoint - The article discusses the tax deduction policies for companies utilizing external labor dispatch services, detailing how these expenses can be categorized and deducted from taxable income. Group 1: Tax Deduction for Labor Dispatch Expenses - Companies can deduct expenses related to external labor dispatch in two scenarios: payments made directly to the labor dispatch company are classified as labor costs, while payments made directly to employees are classified as salary and welfare expenses [2] - It is essential for companies to obtain tax deduction certificates for expenses incurred, which are necessary for calculating taxable income [3] Group 2: VAT Regulations for Labor Dispatch Services - General taxpayers providing labor dispatch services can choose between two methods for VAT calculation: the general method based on total revenue or the simplified method based on the balance after deducting employee wages and benefits [4] - Small-scale taxpayers can also choose between similar VAT calculation methods, with a simplified rate of 3% or 5% depending on the chosen method [5] Group 3: Reporting Employment Numbers - When reporting the number of employees, companies must include both their own employees and those from labor dispatch services, calculated as an average over the quarters [7] - For companies that start or cease operations mid-year, the actual operating period will determine the relevant indicators for reporting [8] Group 4: Policy References - The article cites several policy documents that govern the tax deduction and VAT regulations related to labor dispatch services, providing a legal framework for companies to follow [9]