A company inquired about how to declare income from re-export trade, seeking to understand the process, required documents, and special policy regulations. The best answer suggests first distinguishing the trade type, declaring through the application service platform of the State Administration of Foreign Exchange, truthfully filling in information, providing documents such as contracts and invoices, and paying attention to foreign exchange administration policies for compliant declaration.
Does Re-export Trade Income Need to Be Taxed? Come and Find Out!
Resolved
Our company is planning to engage in re-export trade recently and wants to know if income from re-export trade needs to be taxed? If so, which tax types are involved? What is the tax payment process? We hope to get a detailed answer, thank you!
Trade Expert Insights Answers
Re-export trade income does need to be taxed. Re-export trade mainly involves tax types such as customs duties and value-added tax. In terms of customs duties, as the goods are not actually imported into our country, import customs duties are generally not levied, but some special circumstances may be involved, which need to be determined based on the specific trade situation. For value-added tax, if it meets relevant regulations, the export tax refund (exemption) policy may apply, which depends on the business details, such as trade method, type of goods, etc.
In terms of the tax payment process, first, tax registration must be carried out to ensure that the tax information is accurate and complete. Then, taxable income should be declared truthfully based on the occurrence of business activities. The declaration period and method vary for different tax types. For example, value-added tax is generally declared monthly, and the declaration forms and other materials are submitted through the electronic tax bureau or tax service hall. It is recommended to fully communicate with the local tax authorities before starting business to understand the latest policies and operational requirements and avoid tax risks.
Generally speaking, re-export trade involves stamp duty, which is levied at a certain proportion of the contract amount. This is a tax levied on the act of signing and receiving legally effective documents in economic activities and economic exchanges. Remember to declare it in time.
If re-export trade involves goods subject to consumption tax, consumption tax payment should also be considered. However, it is crucial to determine whether the goods fall within the scope of taxable items. For example, some high-end cosmetics, precious jewelry, etc., may be involved, depending on the category of goods.
Pay attention to tax treaties. If re-export trade involves countries or regions that have signed tax treaties with our country, preferential treatment may be enjoyed, which can reduce the tax burden. You can inquire about this in advance.
When determining the taxation of re-export trade income, costs and income must be accurately calculated. Costs include the purchase price of goods, transportation costs, etc. Accurate calculation facilitates accurate declaration of payable taxes.
Tax declaration materials should be fully prepared, such as contracts, invoices, transportation documents, etc. These materials can prove the authenticity of the business and the accuracy of the data, and smoothly complete the tax payment process.
For cross-border service income from re-export trade, some eligible ones may enjoy tax exemption policies. You can consult the local tax authorities for specific conditions and application procedures.
Enterprises should also pay attention to the time when the tax liability arises. For example, the time when the value-added tax liability arises has specific regulations according to different settlement methods. Do not miss the declaration deadline to avoid late payment fees.
Re-export trade may differ in tax payment details due to regional policy differences. Therefore, when enterprises conduct business in different regions, they should promptly grasp the changes in local tax policies.
If you have questions about paying taxes on re-export trade, you can seek help from professional tax consultants. They can provide targeted answers and ensure that the enterprise complies with tax regulations.