Individuals with foreign payments of less than $10,000 are expected to be exempt from declaration

2022-07-17 0 By

The State Administration of Foreign Exchange plans to increase the amount that individual residents are exempt from declaring when handling foreign-related receipts and payments through banks.The amount of exemption from declaration is to be raised from less than $5,000 (including $5,000) to less than $10,000 (including $10,000).On March 23, the State Administration of Foreign Exchange (SAFE) revised the Implementation Rules for Reporting Balance of Payments Statistics through Banks (issued by Document No. 16 of huifa 2020) in order to standardize the reporting business of balance of Payments statistics conducted by domestic banks.Formulate the Detailed Rules for the Implementation of The Business of Reporting Balance of Payments Statistics through Banks (Draft for Soliciting Comments) (hereinafter referred to as the Draft for Soliciting Comments) and solicit public comments.According to the draft, domestic residents and non-residents who receive or pay foreign nationals through domestic banks should report their balance-of-payments statistics through the handling banks.Foreign-related receipts and payments refers to the funds received from and paid abroad by domestic residents and non-residents through domestic banks, as well as the receipts and payments made between domestic residents and non-residents through domestic banks.Among them, RMB receipts and payments with domestic non-resident individuals shall not be declared for the time being, unless there are clear requirements on current account and capital account management.According to the draft, the specific contents of foreign-related payments include: payment by letter of credit, collection, letter of guarantee, remittance (telegraphic transfer, mail transfer, draft) and other settlement methods;Foreign-related receipts and payments that are issued overseas payment orders through domestic banks and foreign-related receipts and payments that are issued overseas payment orders to domestic banks.Foreign currency includes foreign exchange and RMB.In terms of information collection, basic information and declaration information shall be registered at the same time.The basic information includes the name of the payer, the name of the payer, the payee, the identification code of the subject, the number of the personal id card, the currency and amount of the payment, etc.The declaration information mainly includes the resident country (region) of payee and payee, the code of international balance of payments transaction and postscript of transaction, etc.It is worth noting that the “Draft for Comments” increases the amount that individual residents are exempt from declaring when they handle foreign-related receipts and payments through banks, and stipulates that for individual residents whose single transaction amount is less than equivalent US $10,000 (including US $10,000), they are exempt from declaring under the limit.Previously, the exemption was $5,000 or less.The reporting entity that has foreign income shall declare such amount within five working days (T+5) after the date (T) of settlement by the paying bank or the date (T) of settlement by the foreign exchange bank.In terms of declaration channels, the Draft requires that the declaration subject should declare through the domestic bank to fill in the “Foreign-related Income Declaration Form”, “Application for Overseas Remittance” or “Foreign payment/acceptance notice” paper vouchers or electronic vouchers to declare.Institutions can also declare foreign income online through the Internet version of the digital Foreign Management platform.It is not necessary to use or print paper vouchers to retain foreign-related receipts and payments if the subject of declaration declares international balance of payments statistics through electronic vouchers provided by domestic banks or the Internet version of “digital foreign management” platform.Intern reporter Xu Yupeng editor Han Yeqing