Application Requirements

For a single outbound payment exceeding an amount equivalent to US$50,000 by a domestic entity or individual with certain thresholds met, tax record filing shall be conducted with the competent tax authority at the placewhere such entity or individual is domiciled.

For a single re-investment exceeding US$50,000 in China made with the legitimate income obtained from direct investment in China by a foreign investor, a tax record filing shall be conducted under this tax item.

Legal Basis

Article 1 of the Public Notice of the State Taxation Administration (STA) and the State Administration of Foreign Exchange (SAFE) on Issues Concerning Taxation Recordation for Foreign Payments under Trade in Services and Other Items (issued by the STA and SAFE Public Notice [2013] No. 40 and amended by the STA Public Notice [2018] No. 31)

Materials Needed

Notes:

1. Taxpayers are responsible for the authenticity and legality of the materials submitted.

2. Taxpayers are required to submit paper documents when they go to the tax service hall to handle their tax affairs, or submit electronic documents according to the operation requirements of the online system if they handle their tax affairs online or through mobile terminals.

3. All supporting documents submitted by taxpayers, if copies, must be marked with "Consistent with the original," signed and stamped. If a Chinese translation is submitted, it should be marked with "This translation is consistent with the original text," signed and stamped.

4. Taxpayers may use e-signatures that meet the requirements of the Electronic Signature Law of the People's Republic of China, which have the same legal effect as handwritten signatures or seals.

5. This matter can be processed with incomplete documentation. Taxpayers who meet the conditions for this procedure must sign a "Commitment Letter for Handling with Incomplete Documents," acknowledging their understanding of the relevant requirements and accepting the associated responsibilities. For eligible taxpayers, the tax authority will provide a written notice, which may be in electronic form, detailing the materials that need to be supplemented, the method of supplementation, the deadline for supplementation, and the legal consequences of failing to fulfill the commitment, all in a single notice. Taxpayers are expected to provide all required documents and finalize related matters within the deadline. Any failure to fulfill the commitment will be recorded in the taxpayer credit file according to regulations.

Parties involved in significant tax violations and breaches of trust are ineligible to proceed with incomplete documents. If the relevant parties have fulfilled their legal obligations and have been confirmed by the tax authorities following an inspection, they may be eligible to proceed with incomplete documents after the publication period has expired. Taxpayers who fail to submit the necessary supplementary materials by the deadline will not be allowed to process with incomplete documents again.

Service Channels

1. Tax Service Halls

"City-wide Universal Processing" services will be provided at all tax service halls except for the Third Tax Bureau of Shenzhen Municipality, the Third Tax Service Hall, Bao'an District.

2. No self-service tax terminal is currently available.

3. Online service

An E-tax bureau (e-tax bureau) service is available.

Mobile terminal (tax bureau) and WeChat (tax bureau) services are currently unavailable.

Processing Authority

The competent tax authorities

Processing Time

1. Time limit for taxpayers

N/A.

2. Time limit for tax authorities

The tax authority shallcomplete the procedure immediately after acceptance.

Tel.

Please refer to the tax service map for contact numbers of each tax service hall.

Processing Procedure

Processing Result

Tax authorities will give feedback on the Tax Record Filing Form for Outbound Payments for Trade in Services and Other Items.

Notices for Taxpayers

1. The tax authorities provide services that require at most one visit. Taxpayers need to visit the tax authorities only once at most, provided that the submitted materials are complete and meet the legal requirements for acceptance.

2. Tax record filing shall be conducted with the competent tax authority for the following types of single outbound payments exceeding an amount equivalent to US$ 50,000 by a domestic entity or individual:

(1) Income that foreign entities or individuals obtain in China from trade in services, including transportation, tourism, communications, building installation and labor contracting, insurance services, financial services, computer and information services, use and franchise of exclusive rights, sports, cultural and entertainment services, other commercial services, and government services.

(2) Remuneration that foreign individuals obtain in China, and dividends, bonuses, profits, direct debt interest, guarantee fees, non-capital-transfer donation, compensation, tax, incidental, and other revenues and current transfer income that a foreign entity or individual obtains in China.

(3) Rents from financial leasing, income from real estate transfers, income from equity transfers, and other legitimate income of foreign investors that foreign individuals obtain in China.

3.The following outbound payment of foreign exchange by domestic entities or individuals requires no tax record filing:

(1) Travel, conference, product exhibition, and other expenses incurred overseas by domestic entities;

(2) Office expenses incurred by foreign representative offices of domestic entities and project payments for projects contracted overseas by a domestic entity;

(3) Import and export trade commissions, insurance premiums, and compensation paid overseas by domestic entities;

(4) International transportation payments that foreign entities obtain under the item of import trade;

(5) Insurance premiums, insurance benefits, and other relevant fees under the item of insurance;

(6) Repair fees, fuel costs, port charges, and other expenses incurred overseas by domestic entities engaging in transportation or deep-sea fishing;

(7) Group charges of domestic travel agencies for overseas tourism and boarding, transportation, and other relevant expenses paid for reservations on behalf of tourists;

(8) Proceeds or income that the Asian Development Bank or International Finance Corporation under the World Bank Group obtain in China, including profits distributed from and income from transfer of shares in joint ventures in which they invest, revenues from leasing out or transferring property (including real estate) in China, and interest on loans to entities in China;

(9) Interest under foreign government loans (on-lending) (including mixed foreign government loans[on-lending]) and international financial organization loans provided to China by foreign governments and international financial organizations. The term "international financial organizations" herein includes the International Monetary Fund, the World Bank Group, the International Development Association, the International Fund for Agricultural Development, and the European Investment Bank;

(10) Interest on the foreign financing by designated foreign exchange banks or finance companies, such as overseas loans, overseas inter-bank lending, overseas agency payments, and other debts;

(11) Pro bono donations and aids made by state authorities of provincial level or above;

(12) Income that domestic securities companies or securities depository and clearing companies obtain from paying dividends, bonuses, interest, and proceeds from sale of securities to foreign entities or foreign individuals;

(13) Foreign exchange for private purposes such as studying abroad, traveling and family visiting by domestic individuals;

(14) Refund of foreign exchange by domestic entities and individuals under trade in services, revenues and current transfer items;

(15) Foreign investors reinvesting their legally obtained income from direct investment within the country;

(16) Non-trade, non-commercial foreign exchange payment activities of government agencies, public institutions, and social organizations within the fiscal budget;

(17) Other circumstances specified by the state.

4. In the event of multiple outbound payments for one contract, the taxpayer shall go through tax record filing formalities prior to every payment of foreign exchange, but photocopies of relevant contract (agreement) or transaction vouchers are required only at the first time of record filing.

Fees

Free of charge

Application Forms

The form can be downloaded from the "Tax Services" – "Download Center" – "Form Download" section of the Shenzhen Tax Service website, State Taxation Administration (specific download address) or collected from the tax service halls.

Instructions for Fillingout Forms

Please see the instructions for filling out as shown in the relevant forms.