Author: Zhengquan.com
Source: Zhengquan.com
Link: /answer/E1D2A2
Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Certain Tax Exemption Policies for Personal Financial Goods Trading (Caishui [29] No.111) stipulates:
"IV. Overseas units or individuals shall pay overseas loans to domestic units or individuals. Labor services stipulated in the Provisional Regulations of the People's Republic of China on Business Tax (the State Council Decree No.54th, hereinafter referred to as the Regulations) do not belong to the provision of labor services stipulated in the Regulations in China as mentioned in Article 1 of the Regulations, and business tax is not levied. The specific scope of the above services shall be stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.
According to the above principles, business tax is not levied on the services provided by overseas units or individuals to domestic units or individuals in culture and sports (except broadcasting), entertainment, hotels, restaurants and warehouses in service industries, and bathing, hairdressing, dyeing, painting, copying, engraving and packaging in other service industries. "
According to the Enterprise Income Tax Law of the People's Republic of China:
"Article 3 A resident enterprise shall pay enterprise income tax on its income originating in or outside China.
If a non-resident enterprise does not have an institution or place in China, or if it does, but its income has no actual connection with its institution or place, it shall pay enterprise income tax on its income originating in China. "
According to the Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China:
"Article 7 The income from sources inside and outside China as mentioned in Article 3 of the Enterprise Income Tax Law shall be determined according to the following principles:
(1) ...
(2) The income from providing labor services shall be determined according to the place where the labor services occur;"
therefore, if an overseas company provides design services overseas, your company should withhold and remit business tax, etc. Since the overseas company has no establishment in China, it is not necessary to withhold and remit enterprise income tax because the services occur overseas.