Is Re-Export Trade Taxable in China? Find Out Now!

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My company plans to conduct re-export trade business and would like to know if re-export trade is taxable in China. If so, what tax categories are generally involved? What are the differences between re-export trade and general trade in terms of taxation? I hope to receive a professional and detailed answer, thank you!
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David Chen
David ChenYears of service：10Customer Rating：5.0

Trade Compliance AdvisorStart a Chat

Whether re-export trade is taxable in China depends on the specific circumstances. If the goods do not substantially enter China's customs territory during the re-export process, but merely complete the transaction circulation overseas, generally no import duties, import VAT, or other import-related taxes and fees are required. However, the profits generated from re-export trade business are considered business income of the enterprise and are subject to corporate income tax, with a typical rate of 25%. Enterprises that meet preferential conditions, such as small and micro-enterprises, are eligible for corresponding preferential tax rates.

If re-export trade is improperly operated, and goods enter domestic bonded areas or other special zones without proper bonded supervision, import duties, VAT, and other taxes at the import stage may be involved. The main difference between re-export trade and general trade in terms of taxation is that for general trade, goods actually imported into China are subject to import duties, VAT, and other taxes as per regulations, whereas re-export trade goods, if they do not enter China's customs territory, typically do not involve these import taxes and fees.

References: Weave Transit Re-export Trade: Opening a New Door to Trade?
Richard Wu
Richard WuYears of service：8Customer Rating：5.0

Global Trade Operations ExpertStart a Chat

If re-export trade involves service fees, such as agency re-export services, VAT may be levied. The collection rate for small-scale taxpayers is 3%, and the tax rate for general taxpayers is 6%.

Sophia Wang
Sophia WangYears of service：6Customer Rating：5.0

International Logistics CoordinatorStart a Chat

From the perspective of stamp duty, contracts signed for re-export trade, if they fall within the scope of taxable contracts for stamp duty, such as purchase and sales contracts, will be subject to stamp duty, affixed at 0.03% of the contract amount.

Michael Zhang
Michael ZhangYears of service：10Customer Rating：5.0

Customs Clearance SpecialistStart a Chat

If re-export trade involves foreign exchange settlement, relevant foreign exchange control regulations may indirectly affect tax treatment. Therefore, it is important to ensure compliant operations to avoid tax risks.

Linda Guo
Linda GuoYears of service：3Customer Rating：5.0

Trade Dispute MediatorStart a Chat

For enterprises conducting re-export trade, accounting records must clearly and accurately document income and expenses to facilitate tax accounting and declaration; otherwise, tax issues may arise.

Daniel Kim
Daniel KimYears of service：4Customer Rating：5.0

Commodity Inspection and Quarantine ConsultantStart a Chat

If re-export trade in China involves interest income from funds or similar items, corresponding taxes and fees, such as corporate income tax, must also be paid as per regulations.

Robert Tan
Robert TanYears of service：5Customer Rating：5.0

International Market Development AdvisorStart a Chat

For re-export trade operations in China, attention must also be paid to local policy differences, as different regions may have varying implementation standards and preferential treatments.

Thomas Li
Thomas LiYears of service：7Customer Rating：5.0

Import Licensing AdvisorStart a Chat

If re-export trade goods incur related expenses during transportation, storage, and other stages, these must comply with tax regulations; otherwise, they will affect cost accounting and tax calculation.

Anthony Luo
Anthony LuoYears of service：10Customer Rating：5.0

Trade Compliance ExpertStart a Chat

For the tax treatment of re-export trade, it is advisable to consult a professional tax advisor or the local tax authorities to ensure compliant taxation.

User-submitted questions and answers reflect personal opinions, not the official stance of this website.

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