Adsense Chinese localization and tax issues

Google has released a survey in the Adsense Chinese support forum, the topic is "your support AdSense payment localization", the contents of investigation: "if AdSense pay for localization, what’s your opinion, what is the impact on you? Including the payment currency (RMB), the relevant provisions of the local payment method of payment, etc.."

this investigation may be a prelude to the localization of Adsense, to support the domestic RMB bank card transfer can really accelerate the payment process, but I am concerned about the cost of Adsense users to pay.

first, the cost of localization

in accordance with the provisions of the past, only in the United States have the business activities of Adsense users need to submit tax information to the Google, for other business activities in the United States released, Google is not required to provide tax information. Not to mention the withholding tax problem.

if the implementation of the RMB bank transfer in China, must be related to tax issues. General domestic enterprises by withholding personal income tax, so if Google as companies need funds to individual user transfers, Google as a well-known company without withholding Adsense publisher of the personal income tax, business tax may be in trouble, or even provoke "illegal" charges.

two, personal tax category

in China, personal tax formula buckle is very complex and troublesome, the provisions of the state income tax personal income tax calculation method of the two types of work in accordance with the distinction between these two kinds of methods respectively, the tax is, belongs to the "employment relationship", in accordance with the wage and salary income personal income tax withholding, which belongs to the "non the employment relationship", tax in accordance with the labor remuneration. Relatively speaking, the tax payment of labor remuneration is more.

How should

define "employment relationship" and "non employment relationship"? Formally speaking, the establishment of employment relations must be signed by the company and the labor contract. On the contrary, the employment contract is not signed, was identified as non employment". In fact, the temporary nature of the employment relationship with the staff of labor income, belonging to the non independent personal service income, the income in the nature of wages, rather than employment personnel labor income, which belongs to the independent individuals engaged in free occupation of income, the income is a labor remuneration.

China all Adsense users should not have signed a labor contract with Google, so Adsense revenue will be included in the taxable income tax. In accordance with the "Regulations for the implementation of the" law on personal income tax, income from remuneration according to the balance of income minus 20% of the cost of the amount of taxable income.

specific examples of the same type of domestic is the Baidu site alliance, Baidu deduct the cost is in accordance with the remuneration of 20% of the tax rate for the pre deduction.


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