I don't know much about transshipment trade. I'd like to know what kind of actions belong to transshipment trade and specific examples, and also understand the difference from general trade. The best answer explains that transshipment trade involves the re-export of imported and exported goods through a third country, such as Chinese apparel being re-exported to the United States via Singapore. Transshipment trade involves three parties and differs from direct export in general trade, with a more complex process.
Does transshipment trade require tax payment? Come and find out!
Resolved
I am considering engaging in transshipment trade business recently, but I am not very clear about the tax situation. I want to ask if transshipment trade requires tax payment? Why? If taxes are to be paid, what types of taxes are generally involved? I hope that friends who understand this field can help answer, so that I can have a clearer understanding of the tax knowledge of transshipment trade, and better plan my business.
Trade Expert Insights Answers
Whether transshipment trade requires tax payment depends on the specific circumstances. From the perspective of turnover tax, in China, transshipment trade is not a taxable act for value-added tax, and no value-added tax is levied. This is because transshipment trade goods do not actually enter China's domestic consumption and circulation, and value-added tax is mainly levied on domestic sales of goods or provision of taxable labor services.
However, if transshipment trade generates profits, corporate income tax will be involved. Income obtained by enterprises in monetary and non-monetary forms from all sources is the gross income, which includes income from transshipment trade, and corporate income tax must be paid according to regulations. In addition, if relevant contracts are signed during the transshipment trade process, stamp duty may be involved. For example, purchase and sales contracts require the payment of stamp duty at a certain proportion of the contract amount.
Therefore, transshipment trade is not uniformly taxable or non-taxable, and it needs to be determined based on the substance of the trade and relevant tax regulations.
Transshipment trade does not require the payment of customs duties in some cases, because the goods do not enter the customs territory of the country. Customs duties are generally levied on goods entering and exiting the customs territory. However, if the goods are temporarily stored in the country, some storage-related taxes and fees may be involved, depending on the local regulations.
If transshipment trade involves financial services, such as handling fees generated from settlement, value-added tax may be paid for financial services, but this depends on the specific business composition and tax determination.
If transshipment trade involves intellectual property-related transactions, such as patent licensing, there may be additional taxes and fees, which should be handled according to the tax regulations for intellectual property transactions.
If transshipment trade enterprises carry out business in areas with tax incentives, they may be able to enjoy tax reduction policies. The specific details depend on the local preferential policies.
When transshipment trade goods are transited in a third country, some local taxes and fees may be incurred due to the policies of the transit country. This needs to be understood in advance.
If the transshipment trade contract has special provisions, the entity responsible for tax payment may be different from the usual, and the contract shall prevail.
From an accounting perspective, accurate accounting of transshipment trade income and costs is essential for correctly calculating payable taxes and avoiding tax risks.
In the process of transshipment trade, some fees may be incurred in the stages of goods inspection and quarantine, which, although not strictly taxes, are also costs.