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Business Legal/Tax Advise Non-US

Discussion in 'Business & Tax Advice' started by jeffos101, Jan 30, 2015.

  1. jeffos101

    jeffos101 Registered Member

    Joined:
    Feb 11, 2008
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    Hi,

    I have a Legal / Financial matter.

    A Seyshelles Company "Company A" has an bank account in Hong-kong. It's doing business outside China (South America, Africa) and gets paid sales commission as Commercial agent by its Chinese Factory. "Company A" also works with 2 Consultants "Representatives" in China which are paid based on a commission agreement (Between COmpany A and them) on each Sales made. The Representatives provides an Invoice for Each transaction before getting paid. The Wire is made out to one of the Representatives to his personnal account in Mainland China. "Company A" is not doing Business in Hong Kong.

    Questions :

    - Is there a limit to the amount of commission that can be sent to this representative on his personnal bank account ? Per transaction or per year ?
    - Is there any consequences for Company A to pay the Representatives on a Personnal Chinese bank account ?. I assume the tax issues are up to the representatives to declare and pay in China. and has nothing to do with Company A. ?
    - Does Company A have to pay any additional taxes on that payment based on this particular jurisdiction
    - The commission agremeent contains the names of the two representatives, It is specified in the Agreement that the commissions are to be paid out to one of the Representative's bank account. So the Invoice for the Representatives is For Both and the amount is paid out to one Bank account. Is it possible and legit to do as long as it is mentioned in the commission agrement.

    Company A does not have any requirements for Accouting in Seyshelles but with the current climate it's better to have everything recorded. Also for the Hong Kong bank Account if they ever look into the account's activities, Company A needs to be able to provide the right paperwork.

    I would really appreaciate any seasoned members shedding some lights on this

    J