Foreign exchange payment process?
The process of paying foreign exchange:
1. Labor contract filing
If the company signs a labor contract with an overseas institution, such as consulting fees, etc., it must First, register the contract on the official website of the tax bureau and designate the withholding and payment obligor (directly search for contract registration on the electronic tax bureau website). After the enterprise withholds and pays the tax, there are two situations:
(1) If the single payment amount is > 50,000 US dollars, payment registration needs to be carried out at the time of payment (directly search for payment registration on the Electronic Taxation Bureau website). After obtaining the registration number, the bank counter will make the payment, and the bank will need the company to provide a contract , invoice, withholding tax form, external payment registration number, fill in the foreign exchange payment application form (some banks can operate online banking and mail the foreign exchange payment information)
(2) The single payment amount is US$50,000 , there is no need to record the payment when paying, and the foreign exchange can be paid directly at the bank counter. The bank only requires a contract, invoice and remittance payment application form; note that a tax bill is not required, so for some small amounts of remittance payments, the company does not withhold the tax and pays the remittance directly, but there are potential tax risks. Failure to fulfill the withholding and payment obligations will result in a fine, which may be up to three times the tax to be paid;
2. Other types of foreign exchange payment contracts
If the contract is with an overseas institution If you sign a non-labor contract, you need to collect the contract on the official website of the tax bureau and designate the withholding agent (directly search for source withholding contract information collection on the electronic tax bureau website). After the enterprise withholds the tax, There are also two situations, which will not be described here;
With different contract types, the initial contract filing process will be different; the payment process is similar;
3. Withholding Payment of taxes
Value-added tax: (contract amount/1.06)*6%
Tax and surcharge: VAT*(3%+2%+1%) (urban construction tax 1 % (take our company as an example), education fee 3%, education surcharge 2%)
Income tax rate: The general national service income tax rate is 20%, and 10% is levied at half the rate according to the preferential rate
The United States levies an income tax rate of 25% according to the tax treaty, no discount or half reduction
Profit rate: patent fees, royalties, etc., are levied in full according to the contract amount, other types of services The tax bureau will determine a profit rate based on the type of service used, ranging from 15% to 35%; (taking the service fees that have been paid so far as an example, the approved profit rate is mostly 20%)
Other countries
Then the enterprise withholds and pays the general service fee income tax = (contract amount/1.06)*20% (approved profit rate)*10%
Then the enterprise withholds and pays patents The amount of income from royalties and other income = (contract amount/1.06)*10%
United States
Then the amount of income tax withheld by the enterprise on general service fees = (contract amount/1.06) *20% (approved profit rate) *25%
Then the enterprise’s income from withholding and paying patent royalties = (contract amount/1.06) *25%
4 , Bank payment
Generally, banks require over-the-counter payment, and bring a reserved seal, contract invoice and filing certificate;
Some banks can pay via online banking and upload relevant contract invoices and filing certificates. To prove the materials, prepare the documents through online banking and then send the materials to the foreign exchange counter offline;
The above payment methods need to be confirmed with the bank;
6. Payment amount
Contract amount (foreign currency) - total amount of tax withheld and paid/sale price of the day's spot exchange at the paying bank = net payment (foreign currency)
How to register a company's U.S. dollar remittance?
To open a foreign exchange account, you must have import and export qualifications, which means you must first go to the commerce department to register, and then go to the foreign exchange bureau to register.
Foreign exchange accounts are opened in banks, but the approval authority for opening foreign exchange accounts is the State Administration of Foreign Exchange. Therefore, all domestic institutions that want to open a foreign exchange account must first go through the approval procedures with the State Administration of Foreign Exchange, and go to a bank to open an account with the "Approval Document for Opening a Current Account (or Capital Account) Foreign Exchange Account" issued by the State Administration of Foreign Exchange. It should be noted that before going to the Foreign Exchange Bureau for approval, the account opening unit needs to clarify two things:
First, determine the bank where the account is opened.
Generally speaking, large-scale banks have relatively high international credit ratings, have many account banks and agent banks abroad, and are more convenient to handle settlement, guarantee and other services, and the settlement speed is also fast; smaller banks often have more favorable fees. It is also easier to obtain financing, so companies that need to open an account must understand the conditions of each bank in detail, weigh and compare them, and make a choice based on their actual situation.
The second thing to be clear about is to figure out what kind of account you need to open. Our country implements a foreign exchange policy in which foreign exchange under the current account is freely convertible, so foreign exchange accounts must be distinguished based on different sources of funds. Foreign exchange income under the current account is placed in the settlement account, and foreign exchange income under the capital account is placed in the capital. account.
The so-called capital projects refer to capital transfers such as investment, borrowing, and stock issuance. Corresponding to the capital account is the current account, which refers to trade, labor services, unilateral transfers, etc. If an enterprise absorbs overseas investment, borrows money from overseas, or issues stocks overseas, it needs to open a capital account or a special stock account; if it has export income, overseas contracting project income, repair fee income, accepts donations, etc., it needs to open a capital account or a special stock account. Open a settlement account.
What needs to be pointed out here is that if you only occasionally have small amounts of current account foreign exchange income, you cannot open a foreign exchange account. Such income can only be settled in foreign exchange - sold to a bank. The foreign exchange bureau will determine a maximum limit for the settlement account based on the current account foreign exchange income of different units. The foreign exchange retained in the account cannot exceed this limit, and the excess must also be settled. The restriction on the capital account is: the cumulative income of the account cannot exceed the total amount of foreign investment or the total amount of external borrowings. Investment banks are non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, corporate restructuring, mergers and acquisitions, investment analysis, venture capital and project financing. They are the main financial intermediaries in the capital market.
Investment banking is the product of the development of the securities and joint-stock company systems to a specific stage. It is an important subject of the developed securities market and mature financial system. It plays a role in communicating the supply and demand of funds, structuring the securities market, and It plays an important role in promoting corporate mergers and acquisitions, promoting industrial concentration and the formation of economies of scale, and optimizing resource allocation.