With the increasingly frequent international exchanges, many foreign enterprises come to China to provide labor services. Then these foreign enterprises need to pay value-added tax to China's tax Bureau when they provide labor services. How to calculate and pay the tax? Today I would like to share with you the method of VAT withholding.

According to the Tax Law, if an overseas entity or individual sells labor services within China and does not have a business organization within China, its domestic agent shall be the withholding agent; If there is no agent in China, the buyer shall be the withholding agent, and the withholding agent shall calculate the amount of tax to be withheld according to the prescribed formula and the applicable tax rate:

The amount of tax payable=The price paid by the recipient÷(1+Tax rate)×Tax rate

For example:2022years2Month, outside the company for our countryBEnterprises provide technical consulting services,BThe enterprise pays to it the price including tax300If the overseas company does not have an operating institution in China, thenBHow much value added tax should be withheld by an enterprise?

Because the overseas company has no business organization in China,BAs the withholding agent of the overseas company, the enterprise shall pay the overseas company after deducting the VAT, and the VAT withheld shall be paid byBThe enterprise pays to the tax bureau. The amount of VAT withheld=300÷(1+6%)×6%=16.98(ten thousand yuan)

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.