What taxes are involved in paying overseas personal commissions?

What taxes are involved in paying overseas personal commissions

When an enterprise pays commissions abroad, the business tax should be withheld and paid. If the business tax is put into the treasury, it should be based on the corresponding amount of the business tax put into the treasury. Proportional payment of urban construction tax and education surcharge.

1. According to the provisions of Caishui [2016] No. 36, if an overseas unit or individual engages in taxable activities in the country and does not have an operating institution in the country, it can purchase Fang is the VAT withholding agent.

2. According to the provisions of Caishui [2016] No. 36 "Notes on Sales Services, Intangible Assets, and Real Estate", sales commissions paid by an enterprise to foreign individuals are classified as business assistance For brokerage agency services, the enterprise should calculate the amount of tax that should be withheld according to the following formula:

The value-added tax that should be withheld = the price paid by the buyer ÷ (1+6%) × 6%

The difference between the sales commission paid by an enterprise to foreign individuals and the sales commission paid to domestic individuals is:

For the sales commission paid by an enterprise to domestic individuals, the value-added tax payable by the individual = tax-inclusive sales ÷ (1+3%) Regulations on the VAT threshold.

3. Pay attention to the circumstances stipulated in Article 13 of Document No. 36 and Article 1 of Announcement No. 53 that do not constitute domestic sales of services or intangible assets.

< p>How to handle commissions paid to foreign individuals?

Paying commissions is a normal procedure. The general method is as follows:

1. Confirm the information of the servant:

1. The bank where the servant has an account;

2. The address of the bank where the servant has an account;

3. The name of the company where the servant has an account (it can also be an individual);

4. Account number of the maid company;

2. Commission payment information required by the bank:

1. Commission agreement;

2. Export sales contract ;

3. Export sales invoice;

4. Bank receipt receipt;