PRC WHT Service Details Statement Letter (V2014) – Handbook

PRC WHT Service Details
Statement Letter (V2014) –
Handbook

PRC WHT Service Details Statement Letter (V2014) – Handbook

Background • PRC Withholding Tax on Overseas Service Payment : a) If an overseas supplier provides service to a Chinese local company, withholding tax will be charged from the service payment. The service payment will go through withholding tax(WHT) process. b) As off 2014/7/10, Suppliers providing service to China Intel are required to fill in Service Web Invoice. For suppliers... that NOT able to submit web invoice, service letter (V2014) is required to fill out. And original service letter should be mailed along with original paper invoice and other documents if any to Intel China AP. c) WHT process will kick off after documents received by Intel. After tax position determined and tax paid, payment will be released to supplier with tax deducted. • Payment out of Withholding Tax Scope: a) Overseas goods payment(pay through custom process), including relevant goods transportation fee\ expedition fee\ goods’ customization design charge\ goods packing fee\other out-of-pocket expense. b) Sponsorship fee c) pre-payment/conversion charge for Goods/designed product order Statement Letter of Service Details (V2014) – Handbook 1. Select Intel Company name from drop down list � It should be the correct company name as per PO issued. Supplier can confirm the correct company from Web PO. Note: Please refer to Appendix A for how to confirm the Intel company name on Web PO. Click on the link to go to appendix A page Statement Letter of Service Details (V2014) – Handbook 2 � Fill in the blank with: PO number issued by Intel ---It is 10 digits of numeric ---It should match exactly with the PO number quoted on invoice 3 � Fill in the blank with: Invoice number which submitted to Intel ---number stated here should match exactly with the number on invoice � Fill in the blank with detailed Service Nature Note: Refer to Appendix B for Do and Don’t for service description. Click on the link to go to appendix B page 4 � In format of “date, month and year” ---Common Error : Wrong Correct Q3 2013 1st Jul 2013 - 30th Sept 2013 Q2 2013 - Q3 2013 1st April 2013 - 30th Sept 2013 10/1 - 15/1 10/01/2013 - 15/01/2013 10/11 , 12/11 , 15/11 10/11/2013, 12/11/2013,15/11/2013 31/06/2013 30/06/2013 (June only have 30 days) 29/02/2013 28/02/2013 (28 days for Y2013) Statement Letter of Service Details (V2014) – Handbook 5. � Currency and amount must match with invoice. ---Example : If invoice submitted as USD 135.59, service letter must also indicated as USD 135.59. Service letter will rejected if stated as USD 135.60 6. 7. � Fill in the actual location where service is performed. ---example1: A US company provides training workshop in Singapore, the Chinese company purchased the service and go to Singapore to utilize the Service, the service occurrence location should be Singapore. ---example2: A US company dispatch employees to China to deliver service to the China local company, the service occurrence location should be China. � Choose the correct service provider in the drop down list, pls refer to the instruction on next page. Statement Letter of Service Details (V2014) – Handbook 7. � Explanation for each option: (A) our company which issued invoice---the company (payment receiver) dispatches its own employees to deliver the service. (B) Our representative office in PRC mainland---The company (payment receiver) has a Read the full PRC WHT Service Details Statement Letter (V2014) – Handbook.