Ⅰ.The concept of non-trade proof Explain in detail
- In China (Shanghai, Shenzhen) non-trade foreign exchange payment operations for non-trade and partial capital projects, the business of issuing tax certificates for foreign exchange payments is called “non-trade certificate issuance”, and its full name is “sale and payment of foreign exchange under non-trade and partial capital projects. Submit tax documents”.
- Non-trade proof refers to the domestic institutions (companies, enterprises, government organizations, and various organizations, etc.) and individuals in China when going through the procedures for purchase and payment of foreign exchange under non-trade and some capital projects, it is necessary to submit to the bank the tax payment tax certificate issued by the tax authority for the income.
Ⅱ.Scope of non-trade proof
- Offshore companies use intangible assets such as trademarks, patents, and proprietary technologies to onshore companies to collect royalties from domestic companies.
- The offshore company provides unified management services to the group’s internal companies (including onshore companies), and charge management fees from the service companies according to the group’s unified standards to compensate the fee of their unified management activities.
- The offshore company provides specific services to the onshore company in accordance with the service agreement and charges a service fee. Relative to management fees, service fees are often more targeted and often related to specific projects, such as onshore company employee training.
- After the offshore company helps the onshore company to pay the salaries, insurance, and welfare of foreign employees, then the onshore company will be charged to ensure the confidentiality of the foreign employees’ salaries and related expenses. In addition, offshore companies organize and arrange R&D, training, advertising, and software development in domestic organize, and apportion to companies (including domestic companies) according to certain standards after unified payment.
- Offshore individuals’ remuneration for work in the country, offshore institutions or individuals receive dividends, profits, direct debt interest, guarantee fees, and other income and other frequent transfer projects.
- Financial lease rentals, real estate transfer income, and equity transfer income obtained by offshore institutions or individuals from domestic.
Ⅲ.Types of tax involved in the non-trade proof
Personal Income Tax
1. Personal Income Tax