Planning to engage in Hong Kong re-export trade business, with doubts regarding documentation. Want to understand what documents are needed and how to prepare and operate them. The best answer states that common documents for Hong Kong re-export trade include commercial invoices, bills of lading, and packing lists. They should be filled out according to the requirements of each document, paying attention to information consistency, and timely communication with freight forwarders and customs brokers to ensure smooth document flow.
How to Pay Taxes on Re-export Trade? Seek Your Advice!
Resolved
Our company is planning to engage in re-export trade business recently. We have no prior experience in this area and are completely unclear about the tax payments involved in re-export trade. I would like to ask everyone, what specific taxes are payable for re-export trade? What is the tax rate? Is it paid at the transit point of the goods, or at the company's registered location? Is the payment process complicated? I hope knowledgeable friends can provide a detailed explanation, thank you!
Trade Expert Insights Answers
The types of taxes involved in re-export trade and how to pay them may vary depending on the actual trade situation. In general, re-export trade itself does not involve value-added tax and consumption tax, as the goods are not consumed within the country. Regarding customs duties, if the goods only make a short stop at the transit point and do not enter the local market circulation, customs duties are usually not payable at the transit point.
At the company's registered location, corporate income tax must be paid, with the income from re-export trade as the taxable income. The general corporate income tax rate is 25%. If the company meets preferential conditions such as being a small low-profit enterprise, a lower tax rate may apply.
In terms of payment procedures, enterprises need to declare taxes according to regulations, usually with quarterly prepayments and annual final settlement. You can consult local tax authorities for accurate information, or seek assistance from professional agencies like Zhongmaoda to ensure tax compliance.
In some special circumstances, re-export trade may involve small amounts of taxes and fees related to warehousing, loading, and unloading due to regulations in the transit country. However, the amount is generally not large, and it depends on the policies of the transit country.
If the contract for re-export trade is signed at the company's registered location, stamp duty must be paid, calculated at three ten-thousandths of the contract amount. Don't forget this.
Remember to keep all relevant documents for re-export trade, such as contracts, transportation documents, etc. This is very important for tax declaration and can prove the authenticity of the business during tax audits.
Tax regulations for re-export trade vary greatly in different countries and regions. Before engaging in business, be sure to understand the tax policies of the transit country and your own country to avoid tax risks due to unclear policies.
If you are handling re-export trade through an agency company, pay attention to clarifying tax responsibilities to avoid future disputes.
Re-export trade tax involves many regulations. If necessary, you can hire a tax consultant. Although it costs money, it can ensure accurate and compliant tax handling.
Pay attention to changes in tax policies regularly. Policies related to re-export trade may be adjusted. Timely awareness can avoid tax issues caused by policy changes.
Tax declarations must be made on time. Late filing may result in fines and affect the company's credit. This should be taken seriously.