What is Three Parties agreement? How to deal with it?
After you setup your new WOFE in China, there are a lot of detailed works to do by accountant, Three Parties Agreement will be the first topic you heard from your accountant. Let's share with you the basic information here, maybe it's helpful.
1. What is Three Parties agreement?
Three Parties Agreement example .pdf
Three parties agreement was issued from your tax bureau, which need to be signed by three parties (tax payer/your company, your bank and tax bureau), it will be used for tax deduction in the future. There are 3 originals in total, each party keeps one original upon signing. Tax bureau could deduct payable tax from your RMB company account after accountant declared per month.
2.What is the whole procedure for three-party agreement completion？
（1）Taxpayer goes to tax bureau and applies for blank three-party agreement in three originals.
（2）Tax Bureau affixes authentic tax seal on one of the originals.
（3）Taxpayer fills in company name and tax code, affixes authentic company seal and legal person’s seal on each originals. Then delivers the originals to bank which RMB basic account is opened in.
（4）The bank will check the information and then affixes bank seal, prints contents like bank name, bank account number on the agreements. Bank keeps one original and return another two originals to tax payer；
（5）Taxpayer delivers two originals to tax bureau for verification.
（6）Tax bureau seals the two originals and return one of them to taxpayer.
3. When the three-party agreement can be signed in bank?
Your bank will only sign this agreement after your RMB account is ready. Partial banks requires for down payment in account.
4. Accountant can continue other registration processes after agreement signed.
Verify tax types, tax rates, purchasing invoice equipment etc.
5. What shall tax payer/company do if he is using accounting service provided by us?
So easy !!! If you use our service, you just need submit the three-party agreements to your bank and return 2 of them to us after signed by your bank. Then all other related issues will be handled by us . You just take 1 minute to review our report is ok !
Please feel free to contact Ms. Eileen Liu eileenliu@startchinabusiness.com for help.
