How to tax the consulting fees paid to overseas enterprises?

If an overseas unit or individual provides taxable services in China and has no business organization in China, the withholding agent shall calculate the tax amount to be withheld according to the following formula: tax amount to be withheld = price paid by the recipient ÷( 1+ tax rate) × tax rate.

Item 3 of Paragraph 6 of Article 2 of the Notes on the Scope of Taxable Services stipulates that consulting services refer to business activities that provide and plan information or suggestions on finance, taxation, law, internal management, business operation and process management.

Extended data

"Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC)" Article 27 The relevant expenditures mentioned in Article 8 of the Enterprise Income Tax Law refer to expenditures directly related to income.

The reasonable expenditure mentioned in Article 8 of the Enterprise Income Tax Law refers to the necessary and normal expenditure that conforms to the routine of production and business activities and should be included in the current profit and loss or the cost of related assets.

Article 28 The expenditures incurred by an enterprise shall be distinguished between revenue expenditures and capital expenditures. Income and expenditure are deducted directly in the current period; Capital expenditure shall be deducted by stages or included in the cost of related assets, and shall not be deducted directly in the current period.

Expenses or property used for expenditure formed by non-tax income of an enterprise shall not be deducted or the corresponding depreciation and amortization deduction shall be calculated.

Unless otherwise stipulated in the Enterprise Income Tax Law and these Regulations, the actual costs, expenses, taxes, losses and other expenses incurred by the enterprise shall not be deducted repeatedly.

Article 29 The term "cost" as mentioned in Article 8 of the Enterprise Income Tax Law refers to the sales cost, sales expenses, operating expenses and other expenses incurred by an enterprise in its production and business activities.

Article 30 The expenses mentioned in Article 8 of the Enterprise Income Tax Law refer to the sales expenses, management expenses and financial expenses incurred by an enterprise in its production and operation activities, except the related expenses that have been included in the cost.

Reference: Regulations for the Implementation of Enterprise Income Tax Law of People's Republic of China (PRC) Baidu Encyclopedia