Now many companies are hiring foreign companies for services, especially consulting fees and promotion fees. However, when paying the service fee to the overseas enterprise, there will be a concern about whether the enterprise income tax should be withheld and paid to the overseas enterprise.

Whether to withhold or pay the enterprise income tax, we should first determine whether the profits obtained by the overseas enterprise have the tax obligation of the enterprise income tax. And the most important judgment conditions: in accordance with the location of the labor service, according to the provisions of Article 7 of the "Regulations on the Implementation of the Enterprise Income Tax Law", said in Article 3 of the enterprise Income Tax Law from inside and outside China: income from providing labor service, in accordance with the location of the labor service.

For example, an overseas tourism company provides local tour guides and ground handling services to the employees of mainland tourism companies. When paying this fee, there is no need to withhold corporate income tax because the labor service takes place outside China.

However, if an overseas consulting company sends representatives to the mainland to provide consulting services for a mainland enterprise, the enterprise income tax shall be withheld and paid when the consulting fees are paid because the place is in China.

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