How to Declare Re-export Trade Income? Come and Get Some Advice!

Wondering if balancing income and expenses is considered re-export trade, stating an understanding that re-export trade is a trade activity conducted between the goods’ producing country and consuming country via a third country, and wanting to know the connection and difference between balancing income and expenses and re-export trade. The best answer indicates that balancing income and expenses does not necessarily fall under re-export trade, as re-export trade has specific procedures, and balancing income and expenses is merely a financial calculation method. The key to determining re-export trade is whether the goods are transshipped through a third country, requiring comprehensive consideration of trade processes and other factors.

A company involved in re-export trade business inquires whether re-export trade income is currently taxable, and what tax types and rates are involved. The best answer states that re-export trade income is taxable, generally involving value-added tax, corporate income tax, etc. The VAT rate for general taxpayers is mostly 13%, and the general corporate income tax rate is 25%. Specifics depend on the business situation and policies. It is recommended to consult local tax authorities.

The company has just ventured into re-export trade business and wants to understand how re-export trade income is calculated, asking if it’s only based on the price difference of reselling goods, and whether expenses like transportation and warehousing should be deducted. The best answer states that re-export trade income is usually the price difference of reselling goods, but direct costs such as transportation, warehousing, and customs duties must be comprehensively considered. Re-export trade income = resale price - purchase price - all direct costs.

It is mentioned that the company is engaged in re-export trade business, purchasing from abroad and selling directly to other overseas customers without passing through China. The company is unsure whether to include re-export trade income in operating revenue, other business revenue, or other accounts. The best answer indicates that if re-export trade is the company's main operating business, it should generally be included in "operating revenue," which complies with accounting principles and financial and tax treatment requirements. If it occurs occasionally, it can also be considered to be included in "other business revenue."

A company plans to engage in re-export trade and inquires whether income from re-export trade is taxable, what tax types are involved, and the tax payment process. The best answer indicates that re-export trade income is taxable, mainly involving customs duties, value-added tax, etc. Customs duties are generally not levied on imported goods, while value-added tax may apply export tax refund (exemption) policies. Tax payment requires prior tax registration, followed by declaration within the prescribed period and method. It is recommended to communicate with tax authorities in advance.

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.