On The Issue Of Travel Expenses Paid By Agents For Overseas Parent Companies To China

Q: our company needs to pay for the travel expenses of the overseas parent company to China every year. (the overseas parent company does not provide any services to our company), and the accounting treatment is based on the relevant bills provided by the staff of the parent company (such as the invoice of the bill, all of which are issued by our company, what is the specific impact?), first, it is included in the management fee, the cash is paid to the parent company staff, and then the parent company's remittance is made after reverse entry.

In this way

Is it correct? In addition, when we receive foreign exchange paid by overseas parent companies, do we need to pay taxes or pay taxes?

Answer:

"The nineteenth provision provides that the units and individuals who sell goods, provide services and engage in other business activities shall collect funds from the external business operations, and the payee shall make invoices to the paying party. Under special circumstances, the payee shall make invoices to the payee.

Article third of the detailed rules for the implementation of the Provisional Regulations on business tax stipulates that the regulations provided in Article 1 of the regulations provide

The pfer of intangible assets or the sale of immovable property refers to the act of providing compensation for labor, paid pfer of intangible assets, or the pfer of ownership of real property on a compensatory basis (hereinafter referred to as taxable conduct).

However, the employees employed by a unit or individual industrial and commercial household are not included in the services provided by the units or employers.

The term "compensation" mentioned in the preceding paragraph refers to the acquisition of money, goods or other economic interests.

The Circular of the State Administration of Taxation on Issuing the notes of the business tax items (Trial draft) (No. 1993 of national tax No. 149) stipulates that the service industry refers to the business of providing services for the society by means of equipment, tools, places, information or skills.

Therefore, the travel expenses of the parent company to China will be payable to your company.

It will be recognized as the cost of your company.

And your company receives the remittance from the parent company, which belongs to your company's income for the service provided by the parent company to China. It should pay business tax and enterprise income tax.

In the accounting treatment, the income from the parent company should be recognized as other business income / main business income, and the corresponding cost of payment should be included in other business costs / main business costs.

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The fifty-sixth provision of the regulations on the implementation of the enterprise income tax law stipulates that all assets of the enterprise, including fixed assets, biological assets, intangible assets, long-term prepaid expenses, investment assets and inventories, shall be based on historical cost.

The historical cost referred to in the preceding paragraph refers to the actual expenditure of the enterprise when obtaining the asset.

Assets value added or impairment of assets held by enterprises shall not be adjusted unless the financial and tax authorities of the State Council can confirm profits or losses.

Therefore, asset appreciation and depreciation should be adjusted according to the new value.

However, the finance and tax authorities have issued documents to specific enterprises.