Tax Record Filing for Outbound Payments for Trade in Services and Other Items
From: Shenzhen Tax Service, State Administration of Taxation
For a single outbound payment exceeding an amount equivalent to US$ 50,000 by a domestic entity or individual with certain thresholds met, tax record filing shall be conducted with the competent tax authority at the place of such entity or individual.
For a single re-investment exceeding US$ 50,000 in China with the legitimate income obtained from direct investment in China by a foreign investor, tax record filing shall be conducted under this tax matter.
Tax Record Filing Form for Outbound Payments for Trade in Services and Other Items
Photocopies of relevant contract (agreement) affixed with official seal or transaction vouchers.
Materials in a foreign language should be attached with the Chinese translation. The same applies to all other materials.
1.Taxpayer Service Halls
Applicable to all halls in Shenzhen: Yes (√) No ( )
2. Taxpayer Self-service Machines: Yes (√) No ( )
3. Online Services
E-tax bureau: Yes (√) No ( )
Mobile terminal (tax bureau): Yes ( ) No (√)
WeChat (tax bureau): Yes ( ) No (√)
2.For Tax Authorities
Instantly after acceptance of materials that are complete, compliant with the legal form, and fully filled out.
The Tax Record Filing Form for Outbound Payments for Trade in Services and Other Items will be given by the tax authorities.
[Notice to Taxpayers]
1.Taxpayers are responsible for the authenticity and legality of the materials they submit.
2.Taxpayers only need to visit tax authorities once if the materials are complete and the statutory conditions for acceptance are satisfied.
3. "With certain thresholds met" referred to in [Description] means the following outbound payment of foreign exchange by domestic entities or individuals:
(1) Income that domestic entities or individuals obtain in China from trade in services, including transportation, tourism, communications, building installation and labor contracting, insurance services, financial services, computer and information services, use and franchise of exclusive rights, sports, cultural and entertainment services, other commercial services, and government services.
(2) Remuneration that foreign individuals obtain in China, and dividends, bonuses, profits, direct debt interest, guarantee fees, non-capital-transfer donation, compensation, tax, incidental, and other revenues and current transfer income that a foreign entity or individual obtains in China.
(3) Rents from financial leasing, income from real estate transfer, income from equity transfer, and other legitimate income of foreign investors that foreign individuals obtain in China.
4. The following outbound payment of foreign exchange by domestic entities or individuals requires no tax record filing:
(1) Travel, conference, product exhibition, and other expenses incurred overseas by domestic entities.
(2) Office expenses incurred by foreign representative offices of domestic entities and project payments for projects contracted overseas by a domestic entity.
(3) Import and export trade commissions, insurance premiums, and compensation paid overseas by domestic entities.
(4) International transportation payments that foreign entities obtain under the item of import trade.
(5) Insurance premiums, insurance benefits, and other relevant fees under the item of insurance.
(6) Repair fees, fuel costs, port charges, and other expenses incurred overseas by domestic entities engaging in transportation or deep-sea fishing.
(7) Group charges of domestic travel agencies for overseas tourism and boarding, transportation, and other relevant expenses paid for reservations on behalf of tourists.
(8) Proceeds or income that the Asian Development Bank or International Finance Corporation under the World Bank Group obtain in China, including profits distributed from and income from transfer of shares in joint ventures in which they invest, revenues from leasing out or transferring property (including real estate) in China, and interest on loans to entities in China.
(9) Interest under foreign government loans (on-lending) (including mixed foreign government loans (on-lending)) and international financial organization loans provided to China by foreign governments and international financial organizations. The term "international financial organizations" herein includes the International Monetary Fund, the World Bank Group, the International Development Association, the International Fund for Agricultural Development, and the European Investment Bank.
(10) Interest on the foreign financing by designated foreign exchange banks or finance companies, such as overseas loans, overseas inter-bank lending, overseas agency payments, and other debts.
(11) Pro bono donations and aids by state authorities of provincial level or above.
(12) Income that domestic securities companies or securities depository and clearing companies obtain from paying to foreign entities or foreign individuals dividends, bonuses, interest, and proceeds from sale of securities.
(13) Foreign exchange for private purposes such as studying abroad, traveling and family visiting by domestic individuals.
(14) Refund of foreign exchange by domestic entities and individuals under trade in services, revenues and current transfer items.
(15) Other circumstances specified by the state.
5. If a record filer signs a business contract or agreement relating to outbound payment, where certain thresholds are met, filing of non-resident contracting projects should be conducted pursuant to relevant regulations (see the matter of "Filing of Non-resident Contracting Projects" for details).
6. In the event of multiple outbound payments for one contract, the record filer should go through tax record filing formalities prior to every payment of foreign exchange, but photocopies of relevant contract (agreement) or transaction vouchers are only required at the first time of record filing.
7. In the event of outbound payment, a record filer shall withhold tax or assist tax authorities in levying tax from relevant non-resident in accordance with relevant regulations.
8. Addresses of taxpayer service halls and the website of e-tax bureau are available on the web portals of tax authorities or by dialing the(86-755)12366 tax service hotline.
Free of charge.
(Note: The text above is a translation of the Chinese version for reference only. In case of any discrepancy between the two versions, the original published Chinese version shall prevail.)