Inquiring whether a company can receive tax refunds when exporting products through an agency, along with details on the refund process, required documents, and requirements for both the commissioning party and the agent. The best answer states that commission-based agency exports are eligible for tax refunds, typically handled by the commissioning party. It requires a signed agreement, collection of documents like customs declarations, and application. The commissioning party needs import/export operating rights and sound financial status, while the agent must truthfully issue certifications and operate according to regulations for a smoother refund process.
What taxes do general agency export companies typically have to pay?
Resolved
I am planning to set up an agency export company recently and am not very familiar with tax matters. I would like to know what taxes an agency export company needs to pay in its daily operations. I hope friends who are knowledgeable in this area can explain it to me, preferably in detail regarding the scope of taxation, tax rates, and other related information. Thank you!
Trade Expert Insights Answers
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
The main taxes involved for agency export companies include Value-Added Tax (VAT), Corporate Income Tax, and Stamp Duty.
Regarding VAT, agency export businesses themselves typically do not pay VAT. If the agency company exports goods on its own account, it may be subject to export tax rebates or pay VAT as if it were domestic sales. If it is a general taxpayer, the export of goods is calculated for tax rebates at the tax rebate rate; if it is treated as domestic sales, VAT is paid at applicable tax rates such as 13%.
Corporate Income Tax is calculated based on the company's taxable income, with a basic tax rate of 25%. The total income of the company in each tax year, minus non-taxable income, tax-exempt income, various deductions, and deductible losses from previous years, is the taxable income.
Stamp Duty is payable as a certain proportion of the contract amount when signing agency export contracts and other related contracts. For example, sales contracts are subject to a stamp duty of 0.3‰ of the sales amount.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
In addition to the above, Urban Maintenance and Construction Tax, Education Surcharge, and Local Education Surcharge may also be involved. These are calculated based on the actual VAT paid. The tax rate for Urban Maintenance and Construction Tax is 7% in urban areas, 5% in counties and towns, and 1% in other areas. The Education Surcharge rate is 3%, and the Local Education Surcharge rate is generally 2%.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
If the agency export company owns its own property, it also needs to pay property tax. If it is valued based on cost, it is calculated on the remaining value after deducting 10% - 30% from the original value of the property, with a tax rate of 1.2%. If it is valued based on rent, it is calculated based on the rental income of the property, with a tax rate of 12%.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
Land Use Tax may also be involved. If the company occupies land within the scope of cities, counties, established towns, or industrial and mining areas, it needs to pay land use tax according to regulations. The tax amount is calculated based on the annual tax amount per square meter stipulated by the local government. Standards vary in different regions.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If the agency export company owns vehicles, it also has to pay vehicle and vessel tax. The tax is paid according to different standards such as vehicle type and displacement. For passenger vehicles, the tax amount varies depending on the displacement, ranging from several hundred to over a thousand yuan.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Additionally, in import and export activities, if specific products are involved, consumption tax may apply. For example, when acting as an agent for the export of taxable consumer goods such as high-end cosmetics, tobacco, and alcohol, consumption tax needs to be paid according to regulations, with tax rates varying depending on the specific product.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
Although customs duties are generally paid by importers, if the agency export company is involved in some special businesses, such as bonded area related businesses, it may also deal with customs duties. However, the specific tax rates for customs duties are determined by different goods and relevant policies.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
Withholding and remitting taxes should not be overlooked. If the agency export company pays fees to overseas enterprises, it may need to withhold and remit corporate income tax, VAT, and other related taxes and fees. This will be handled according to relevant tax treaties and domestic tax laws.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
The Disabled Employment Security Fund is also a consideration. If the agency export company fails to arrange employment for disabled persons at the prescribed ratio, it needs to pay the Disabled Employment Security Fund. This is generally calculated based on the difference between the number of disabled persons that should have been employed and the number actually employed in the previous year, multiplied by the average annual salary of the unit's employees.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Regarding the Cultural Undertaking Development Fee, if the agency export company engages in advertising agency and other related advertising services, it needs to pay the Cultural Undertaking Development Fee based on the billing amount of advertising services provided and a fee rate of 3%.