The company plans to use an agency company for export business and is unclear about how to pay taxes for agency exports. They want to understand tax payment precautions, specific tax types, and tax calculation basis. The best answer states that if the principal is a manufacturing enterprise, the "exemption, offsetting, and refund" tax method is generally implemented; foreign trade enterprises generally have tax exemption and refund. The agent is mainly subject to value-added tax on agency service income, paid at the 6% tax rate for modern services, with the tax calculation basis being the total price and extra-price expenses.
What taxes are generally required for entrepot trade? Please help me answer!
Resolved
Our company intends to engage in entrepot trade business. We have no prior experience in this area and are unsure about the types of taxes that need to be paid. We heard that the tax policies involved in entrepot trade are relatively complex, and we are concerned about potential issues in tax processing. We would like to ask everyone, what are the usual types of taxes levied for entrepot trade? Are there any relevant tax rate standards and precautions? We hope that those who know can explain in detail. Thank you!
Trade Expert Insights Answers
Entrepôt trade generally involves the following taxes: Firstly, value-added tax. Since the goods do not enter the domestic customs territory in entrepot trade, domestic VAT is usually not levied. Secondly, customs duties. As the goods are shipped directly from the country of production to the country of consumption without customs declaration of import in our country, customs duties are normally not levied. However, it should be noted that if the goods undergo operations such as temporary warehousing in our country, relevant warehousing fees may be involved. In addition, regarding corporate income tax, profits from entrepot trade need to be included in taxable income and corporate income tax paid. The general tax rate is 25%. If the conditions for tax preferences such as small and micro enterprises are met, the corresponding preferential tax rate can be applied. In terms of stamp tax, entrepot trade contracts are considered sales contracts and are subject to stamp tax at a rate of 3/10,000 of the contract amount. During operations, it is important to retain relevant business vouchers and accurately calculate costs and revenues to ensure compliant tax processing.
If entrepot trade involves agency services, VAT may be involved and levied at a tax rate of 6% for modern services. However, if it is purely the buying and selling of goods in entrepot trade, it generally does not involve VAT.
Pay attention to the logistics involved in entrepot trade. If there are loading and unloading fees at the transit point, some local government fees may be involved, which depend on local regulations.
Don't forget stamp tax. As mentioned earlier, it is levied on sales contracts. However, if the contract amount is uncertain, stamp tax should be paid at 5 yuan first, and then supplemented based on the actual amount later.
When a company engages in entrepot trade, it should pay attention to the special tax policies for entrepot trade in different countries and regions. Some places may offer preferential policies to encourage entrepot trade.
Entrepôt trade may also involve inspection and quarantine fees, which vary depending on the goods.
Foreign exchange related handling fees should also be considered. Although not strictly a tax type, they affect costs, and different banks have different fee standards.
If intellectual property licensing or usage is involved in entrepot trade, related taxes may also apply, and it should be analyzed based on the specific situation.
From a tax declaration perspective, entrepot trade business should be declared promptly and accurately to avoid additional fees such as late payment penalties due to delayed declaration.