Article 4 stipulates that the provision of labor services, the transfer of intangible assets or the sale of real estate within the territory of the People's Republic of China (hereinafter referred to as the territory) as mentioned in Article 1 of the Regulations means that the units or individuals providing or receiving labor services as stipulated in the Regulations are within the territory.

Article 11 The business tax withholding agent stipulates that if the Chinese people and units or individuals outside China provide taxable services, transfer intangible assets or sell real estate in China, and there is no business organization in China, their domestic agents shall be the withholding agents; If there is no agent in China, the transferee or the buyer shall be the withholding agent. Therefore, according to

Provisional Regulations of the People's Republic of China on Business Tax

According to the current regulations, the interest paid overseas by domestic enterprises needs to pay business tax. According to what you said, the overseas enterprise should not set up a business institution in China, and your enterprise should be the withholding agent of this business tax.

In addition, regarding the time when the withholding obligation occurs, your enterprise shall handle the basis according to the following provisions.

Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax

Article 12 stipulates that,

The business tax obligation occurs on the day when the taxpayer provides taxable services, transfers intangible assets or sells real estate, and receives the operating income or obtains the evidence to claim the operating income. Unless otherwise provided by the competent departments of finance and taxation of the State Council, such provisions shall prevail. The business tax withholding obligation occurs on the day when the taxpayer's business tax obligation occurs.