July 30 2021

The Change on Record Filing for External Payments of Trade in Services at Tax Authority

Source: Announcement by State Taxation Administration (STA)

State Taxation Administration announced on 2nd July about the change on record filing for external payments of trade in services at tax authority. The main contents are:

1.If a domestic entity or individual needs to make multiple payments for the same contract, it only needs to apply for tax filing when making the first payment.

2.It does not need to apply for tax filing if foreign investors reinvest in China using lawful income from domestic direct investment.

3.The tax filing could be done either through E-tax hall or at tax hall on-site.

In view of this change, we kindly remind that:

1.If you have completed the tax filing for payment of certain contract before the announcement, and need to make payment for same contract now, there is no need to do tax filing of payment again.

2.A single external payment not exceeding the equivalent US $50,000 is not required to do tax filing. If multiple external payments are required based on the same contract, tax filing is only required when a single payment exceeds the equivalent amount of US $50,000 for the first time.

3.If the external payment has not been made, the tax filing form can be canceled or amended. If the external payment has already been made, the tax filing form can only be amended.