The company plans to develop entrepôt trade business and wants to understand how taxes are collected on entrepôt trade funds, for example, whether taxes are collected based on the value-added portion of the goods or by other methods, and whether there are differences in taxation for different commodities. The best answer points out that entrepôt trade mainly involves stamp duty, paid as a certain proportion of the contract amount. Generally, value-added tax and consumption tax are not levied on turnover tax. If services are involved, there may be service value-added tax. The basic framework is the same for different commodities, but there may be special regulations. It is recommended to communicate with the tax authorities.
Regarding the taxation of entrepôt trade, does anyone understand it?
Resolved
My company recently plans to engage in entrepôt trade business but is not very familiar with how entrepôt trade is taxed. I heard that the types of taxes and taxation methods involved in entrepôt trade are different from general trade, so I want to ask everyone, what specific taxes need to be paid for entrepôt trade? How is it calculated? Are there any special policies or regulations to pay attention to? I hope experienced friends can share relevant knowledge, thank you!
Trade Expert Insights Answers
Entrepôt trade mainly involves taxes such as value-added tax and corporate income tax. In terms of value-added tax, entrepôt trade is usually an item that is not subject to value-added tax, because the goods are not actually imported and sold within the country. However, it should be noted that if the enterprise provides relevant services in the process of entrepôt trade, such as agency services, it may need to pay value-added tax on service income, with a general tax rate of 6%.
In terms of corporate income tax, income obtained by the enterprise from entrepôt trade should be included in the taxable income, and corporate income tax should be paid at a tax rate of 25% (preferential tax rates apply if preferential conditions such as small low-profit enterprises are met). The calculation is based on the balance after deducting relevant costs and expenses from the entrepôt trade income as taxable income. In addition, the documentation should be complete to deal with tax authority inspections, and there may be subtle policy differences in different regions, so it is recommended to communicate further with local tax authorities for confirmation.
If entrepôt trade involves signing contracts, it may be subject to stamp duty. The stamp duty is levied at 3/10,000 of the contract amount, and the tax base is the amount stated in the contract. However, the regulations on stamp duty payment for entrepôt trade contracts may vary in different places, so it is best to consult local tax authorities for confirmation.
If entrepôt trade goods are stored at the transit point, relevant storage fees may be involved. For example, some places levy value-added tax on warehousing services, with a general tax rate of 6%. Attention should be paid to the specific policies of the warehouse location to clarify the tax costs during the warehousing process.
In the transportation links of entrepôt trade, if transportation contracts are involved, stamp duty may also be involved. The stamp duty rate for transportation contracts is 5/10,000, and the tax is calculated based on the amount of transportation fees.
Attention should be paid to the foreign exchange management regulations involved in entrepôt trade. Although it is not a direct tax, compliance with foreign exchange receipt and settlement has an impact on the company's financial and tax treatment, avoiding tax declaration issues due to foreign exchange problems.
For some entrepôt trade businesses, if they involve specific commodities, there may be special tax policies. For some resource-based commodities, it is necessary to understand the special regulations for these commodities during the entrepôt trade process in advance.
When calculating the costs and income of entrepôt trade, it is necessary to accurately allocate various expenses and distribute them reasonably to ensure the accuracy of corporate income tax calculations and avoid tax risks.
When filing tax returns, data related to entrepôt trade should be reported accurately, and supporting materials for business authenticity should be prepared, such as contracts, bills of lading, invoices, etc., to be available for inspection by the tax authorities.
Pay attention to tax treaties. If entrepôt trade involves countries or regions that have signed tax treaties with China, relevant treaty benefits may be enjoyed, reducing tax costs.