Q: I have a payment to an overseas supplier for service provided, what is the tax  I need to withhold from the payment?

R: There are two taxes commonly involved. One is VAT tax with the 6%. Another is enterprise income actual tax burden which rate is based on the service nature. 

Q: All the payments to overseas must withhold the taxes by our company?

R：Yes, it is the company's legal responsibility.

Q: But why if the payment no more than 50,000USD, the bank will not ask me to provide the tax payment evidence?

R: It is just meaning if the payment amount is no more than 50,000USD, the bank has no obligation to check the tax payment. Still the company's responsibility for the withholding taxes has not been exempted.

Please contact us with any enquiries

wcx@ruanyinchina.com

www.303033.cc

+86 021 6049 2821

+86 189 1629 8482