Must the payment of agency export profits be made through a public account?

According to the latest foreign exchange management regulations for 2025, there are issues with the payment of agency export profits.Three compliance pathways:

• Regular corporate-to-corporate settlement: After the agent collects the foreign exchange, the remaining payment will be transferred to the client's corporate account after deducting the service fee.
• Cross-border RMB settlement: Profit distribution completed through the cross-border two-way RMB capital pool.
• Offshore account operation: Establish an NRA account in the free trade zone for fund transfers (complete trade documents required).

Please note: Payments exceeding $50,000 per transaction must be submitted.Proforma invoice, customs declaration, shipping documentsSupporting documents for the three-way match.

How do different payment methods affect profit settlement?

Comparative Analysis of Mainstream Payment Tools in 2025:

• Handling fee: 0.1% - 0.3%
  • Advantages: Fast arrival (1-3 working days), transparent handling fees
  • Risk: Guard against intermediary bank fees causing amount discrepancies.
• L/C(L/C)
  • Advantages: Bank credit guarantee, suitable for large transactions
  • Note: The 2025 ICC new version of the Letter of Credit practice requires the addition of ESG clauses.
• : Suitable for small - value orders.
  • Emerging Methods: Some cross-border payment platforms have obtained pilot qualifications from the State Administration of Foreign Exchange.
  • Limit: No more than USD 200,000 per transaction, with an annual cumulative limit of USD 2,000,000.

How to Avoid Tax Risks in Profit Distribution?

Tax supervision in 2025 will focus on three key areas:

• Authenticity of Payment Documents: The variance between bank statements and declared customs amounts must be ≤5%.
• Reasonableness of Service Fee: The agency fee rate typically falls within the range of 3-8% of the cargo value (excluding special industries).
• Tax Payment Certificate Completeness: It is mandatory to obtain the value-added tax special invoice issued by the agent.

Typical Case: A furniture export company was found guilty of evading corporate income tax by receiving profits through private accounts, resulting in the requirement to pay back taxes along with a 0.5-fold penalty.

How to handle cross-border payment delays?

Common Issue Resolution Plans for the Past Three Years:

• Bank-side reason:
  • Request the agent to provide SWIFT message tracking.
  • If it exceeds 15 working days, an abnormal payment report can be submitted to the Foreign Exchange Administration.
• Trade disputes lead to:
  • Initiate the arbitration clause in the trade contract immediately.
  • Recourse of accounts receivable through Sinosure

What are the new changes in foreign exchange control in 2025?

Key policy points requiring special attention this year:

• Digital Currency Pilot: Enterprises within the free trade zone are permitted to use digital yuan for cross-border settlements.
• Negative List Adjustment: Three additional categories of goods (related to semiconductor materials) are prohibited from being exported through agents.
• The declaration time limit has been shortened: The deadline for foreign exchange income declaration has been reduced from 90 days to 60 days.

It is recommended that enterprises participate in the foreign exchange administration organized by the SAFE on a quarterly basis.Cross-border Capital Pool Policy Interpretation Seminar, stay updated with the latest regulatory developments.