The company is involved in re-export trade business and is unsure whether the income from this business belongs to other income. It is stated that other income generally refers to daily activity income outside the enterprise's main business. It wants to know how re-export trade income should be classified. The best answer points out that re-export trade income usually does not belong to other income. The key depends on the nature of the enterprise's business and its operational focus; if re-export trade is the main business, it should be accounted for as main business revenue, while if it's an occasional activity, it might be other operating income.
How to Declare Re-export Trade Income? Come and Get Some Advice!
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Our company has recently started re-export trade business and is unclear about the process and requirements for declaring re-export trade income. We would like to ask, how exactly should re-export trade income be declared? What materials are needed? Will there be special policies and regulations involved? We hope to get a detailed and easy-to-understand answer. Thank you all!
Trade Expert Insights Answers
For the declaration of re-export trade income, you must first accurately distinguish the type of trade, such as whether it is re-export of goods or services. Generally, enterprises need to declare through the application service platform of the State Administration of Foreign Exchange after the import and export of goods or completion of services.
When declaring, you must truthfully fill in the relevant information, such as the transaction code. Re-export trade generally corresponds to "122010 Re-export Trade". You also need to provide detailed transaction contracts, invoices, transportation documents, and other materials that can clearly prove the authenticity and reasonableness of the transaction.
At the same time, pay attention to foreign exchange administration policies, which may be adjusted at different times. For example, the foreign exchange administration may monitor the scale and frequency of re-export trade receipts and payments. Enterprises must declare in compliance to avoid risks caused by improper declaration.
Before declaring re-export trade income, you need to confirm the transfer path of goods ownership, which is crucial for correct declaration. The contract prepared should detail the transaction parties, goods details, price terms, etc.
Pay attention to the accuracy of the amount when declaring, including the value of goods, transportation costs, etc., which should all be calculated clearly. The invoices submitted should be standardized and accurately reflect the substance of the transaction.
Pay attention to the policy differences of trading countries. Some countries have strict supervision over re-export trade, and their declaration requirements also differ. Understanding this in advance can avoid declaration troubles.
If re-export trade is conducted through an agent, clarify the declaration responsibility with the agent to ensure the smooth progress of the declaration process.
Keep all related correspondence files for re-export trade in daily operations for future declaration review.
Do not delay in declaration. Declare in a timely manner according to regulations to prevent overdue records from generating negative impacts.
Study relevant tax policies. Re-export trade may involve different types of taxes. Understanding the policies can help with reasonable tax payment.
The declared data should be consistent. Data from contracts, invoices, and the declaration platform must all match.