Flow of foreign exchange payment:
1, labor contract filing
If a company signs a labor service contract such as consulting fees with an overseas institution, it needs to file the contract with the tax bureau in official website first, and designate a withholding agent (directly search the website of the electronic tax bureau for contract filing). After an enterprise withholds and pays taxes, there are two situations:
(1) single payment amount >; 50,000 US dollars, payment records need to be made when making payment (search the payment records directly on the website of the electronic tax bureau). After obtaining the record number, the bank pays the foreign exchange at the counter. On the bank side, enterprises are required to provide contracts, invoices, tax withholding bills, foreign payment record numbers, and fill out application forms for foreign exchange payment (some banks can operate online and mail foreign exchange payment information).
(2) If a single payment of $50,000 is made, foreign exchange can be paid directly at the bank counter without filing the payment. Banks only need contracts, invoices and payment application forms; Note that no tax bill is needed, so some small foreign exchange payments are not withheld and remitted by enterprises, but there are potential tax risks. If they fail to fulfill their obligation to withhold and remit taxes, they need to be fined, and the maximum amount of the fine may be three times of the tax payable;
2. Other types of foreign exchange payment contracts
When signing a non-labor contract with an overseas institution, it is necessary to collect the contract in official website, the tax bureau, and designate a withholding agent (the website of the electronic tax bureau directly searches for the source withholding contract information collection). After an enterprise withholds and pays taxes, there are two situations, which will not be repeated here.
Different contract types have different initial contract filing links; The payment process is similar;
3. Withholding and paying taxes
VAT: (contract amount/1.06)*6%
Taxes: value-added tax *(3%+2%+ 1%) (urban construction tax 1% (taking our company as an example), education fee is 3%, and education fee is 2% additional).
Income tax rate: Generally, the national service fee income tax rate is 20%, which is levied at a discount rate of 10%.
According to the tax treaty of the United States, the income tax rate is 25%, with no preferential treatment or half reduction.
Profit rate: patent fees, royalties, etc. All are charged in full according to the contract amount, and other types of service fees will be approved by the tax bureau according to the unused service types, with the range of15%-35%; (Take the paid service fee as an example, the approved profit rate is mostly 20%)
other countries
Then the general service fee income tax withheld by the enterprise = (contract amount/1.06)*20% (approved profit rate) * 10%.
Then the enterprise's income from withholding patent royalties = (contract amount/1.06)* 10%.
United States of America
Then the general service fee income tax withheld by the enterprise = (contract amount/1.06)*20% (approved profit rate) *25%.
Then the enterprise's income from withholding patent royalties = (contract amount/1.06)*25%.
4. Bank payment
General banks need to pay at the counter and reserve seals, contract invoices and filing certificates;
Some banks can pay through online banking, upload relevant contract invoices and filing proof materials, make documents through online banking and then send materials offline to the foreign exchange counter;
All the above payment methods need to be confirmed with the bank;
6. Payment amount
Contract amount (foreign currency)-total amount of tax withheld and remitted/cash selling price of paying bank = net payment (foreign currency)
How to record the US dollars remitted by the company?
If you want to open a foreign exchange account, you must have import and export qualifications, that is to say, you must first go to the commercial department for registration, and then go to the foreign exchange bureau for record.
Foreign exchange accounts are opened in banks, but the examination and approval authority for opening foreign exchange accounts is the State Administration of Foreign Exchange. Therefore, to open a foreign exchange account, all domestic institutions must first go through the examination and approval procedures with the State Administration of Foreign Exchange, and then open an account in a bank with the "Approval Document for Opening a Current Account (or Capital Account)" issued by the Administration of Foreign Exchange. It should be noted that before going to the foreign exchange bureau for approval, the account opening unit needs to be clear about two things:
First, identify the bank. Generally, the international credit rating of large banks is relatively high, and there are many account banks and correspondent banks abroad, which is convenient for settlement, guarantee and other businesses, and the settlement speed is also fast; Smaller banks usually have more favorable fees and easier access to financing. Therefore, enterprises that need to open an account must know the situation of each bank in detail, weigh and compare, and choose according to their actual situation.
Second, the clear thing is to find out what kind of account you need to open. China implements the foreign exchange policy of freely convertible foreign exchange under current account, so foreign exchange accounts should be distinguished according to different sources of funds. Foreign exchange income from current account should be put into settlement account, and foreign exchange income from capital account should be put into capital account.
The so-called capital account refers to the transfer of capital such as investment, borrowing and issuing stocks. Corresponding to the capital account is the current account, which refers to trade, labor services, unilateral transfer and so on. Enterprises that absorb overseas investment or borrow money from abroad and issue stocks abroad need to open a capital account or a special account for stocks; If there is export income, overseas contracted project income, repair fee income, accepting donations, etc. You need to open a settlement account.
What needs to be pointed out here is that if there is only a small amount of current account foreign exchange income occasionally, it is impossible to open a foreign exchange account. Such income can only be settled and sold to banks. The foreign exchange bureau will check and approve a maximum amount for the settlement account according to the current account foreign exchange income of different units, and the foreign exchange retained in the account shall not exceed this limit, and the excess shall also be settled. The restriction on the capital account is that the accumulated income of the account cannot exceed the total amount of foreign investment or foreign loans. Investment banks are non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital and project financing, and are the main financial intermediaries in the capital market.
Investment bank is the product of the development of securities and joint-stock company system at a specific stage, and it is an important subject of developed securities market and mature financial system. In the development of modern social economy, it plays an important role in communicating the supply and demand of funds, building a securities market, promoting enterprise mergers and acquisitions, promoting industrial concentration and economies of scale, and optimizing resource allocation.