The foreign exchange revenue and expenditure business involved in overseas contracted projects is complicated. Briefly describe 1 first. External payment mainly includes (1) payment of project funds, advance payment and agency fees: it is regarded as service trade. For details, please refer to Huifa 2002 29 (2) Payment for overseas contracted engineering materials and their uses: Payment shall be treated as trade in goods. 2. Foreign-related income mainly includes (1) project payment income, which is treated as service trade income; (2) Equipment that needs to be exported from China due to overseas contracted projects shall be handled according to the foreign exchange receipt of goods. Take a look at this case: (1) A domestic construction and installation engineering company is a labor engineering contracting company, which has the right to sign contracts with foreign countries, and its income includes domestic building materials and domestic building materials. Analysis and Conclusion: According to the fifth edition of Balance of Payments Manual, construction enterprises operating in other economies can be classified as direct investment activities or service exports. The specific treatment is as follows: ① Overseas construction, installation and labor contract projects over one year are regarded as direct investment. If the income from the installation service contract is settled separately from the provided building materials and equipment, the income from the installation service contract shall be reported under the heading of "direct investment income-profit repatriation" with the balance of payments transaction code of "60 1023", and the income from the provided building materials and equipment shall be reported under the heading of "general goods-general trade-export income from foreign contracted projects" with the balance of payments transaction code of "650". Expenditure is declared under "direct investment-China's foreign direct investment-unregistered investment expenditure", and the transaction code of balance of payments is "60 10 18". (2) Overseas construction, installation and labor contracting projects for less than one year (including one year) shall be declared according to the following conditions: the export income of building materials and construction equipment provided by domestic enterprises for overseas projects is "general goods-general trade income-export income of overseas contracted projects", and the international balance of payments transaction code is "10/050"; If it is impossible to distinguish the project payment from the export equipment payment in the unified accounting of the project, its total income should be declared as labor engineering income, with the transaction nature of "labor-construction and installation and labor contracting services-construction and installation labor income" and the transaction code of balance of payments as "2040 10".