HSBC China has completed its first electronic tax payment for a corporate client in Shanghai, which the bank claims is a first among all foreign banks in the city.
The new tax payment service deducts funds in real time and enables customers to complete tax reports and process payments on the State Administration of Taxation’s (SAT) system terminal from any location.
The group has also introduced an electronic payment (e-payment) system which enables companies to submit cross-border payment documentation electronically through HSBCnet without having to present paper documents.
“Financial liberalisation is set to continue as we move towards the Chinese government’s objective to establish Shanghai as a leading international financial centre by 2020 and make the renminbi [RMB] a leading currency offshore,” said Kee Joo Wong, HSBC’s head of global payments and cash management in China.“Regulatory authorities are changing the cash management landscape to improve the ease of doing business in and with China. It is important, therefore, that treasurers remain up-to-date with new opportunities to enhance their cash management capabilities in China.”
With the ability to advise payment status’ in real time, the new service is designed for the payment of various state and local taxes as well as other charges including value added taxes (VAT), business taxes, corporate income taxes, personal income taxes and stamp duties. HSBC China will extend this service to other branches across the country by the end of this year including Beijing, Tianjin, Xiamen, Chengdu and Chongqing.
The service helps companies to centralise and standardise all cross-border payments by submitting paperless instructions and documents through a shared services centre for review and processing, HSBC China added. Corporates such as the global electronics and technology company Laird Technologies have a network of branches across the mainland and find this centralised cross-border payment solution beneficial for their cash management requirements.