The company plans to conduct re-export trade business, inquiring whether re-export trade is taxable in China and which tax categories are involved, and also wants to understand the differences between re-export trade and general trade in terms of taxation. The best answer points out that if the goods do not substantially enter China's customs territory, generally, import-related taxes and fees are not required to be paid, but the profits generated are subject to corporate income tax. Improper operation leading to goods entering special areas without bonded supervision may involve import duties, VAT, etc.
What Taxes Are Generally Payable for Re-export Trade? Find Out Now!
Resolved
Our company plans to conduct re-export trade business, but we are not very familiar with the relevant tax knowledge. We want to know what types of taxes are payable for re-export trade. What are the general tax rates for these tax categories? And are there any specific points to note during the payment process? We hope a professional can help answer these questions to give us a clearer understanding of the tax implications of re-export trade and avoid future tax risks.
Trade Expert Insights Answers
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
Re-export trade mainly involves the following types of taxes: First is Value Added Tax (VAT). Generally, goods in re-export trade do not actually enter or exit the country and therefore do not fall within the scope of VAT taxable items, so VAT is not levied. However, if there are related agency services during the re-export process, the income from these agency services is subject to VAT according to regulations, usually at a rate of 6%. Second is Corporate Income Tax (CIT). Profits generated from re-export trade are subject to CIT, with a basic tax rate of 25%. If the enterprise qualifies for preferential conditions, such as being a small-profit enterprise, a lower tax rate may apply. Additionally, regarding Stamp Duty, contracts related to re-export trade, such as sales and purchase contracts, may require Stamp Duty to be paid at a certain percentage of the contract amount, for example, 0.03% for sales and purchase contracts. When making payments, it is important to accurately calculate all taxable income and costs, declare taxes promptly, and retain relevant business vouchers and contracts for potential tax inspections.
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
If re-export trade involves warehousing services, warehousing contracts are subject to stamp duty at a rate of 0.1%. Also, pay attention to local tax policies, as different regions may have varying detailed tax requirements for re-export trade.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
Although goods in re-export trade do not actually enter or exit the country, there may be some regulatory fees during customs declaration and other procedures. Do not overlook this part when calculating costs. Furthermore, in the corporate income tax declaration, accurately fill in relevant income and deduction items.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If the contract amount for stamp duty is uncertain, affix a 5 yuan stamp first, and then add more stamps once the amount is determined later. At the same time, pay attention to changes in tax policies, as policies like tax incentives may be adjusted over time.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
If re-export trade involves foreign currency settlement, exchange rate fluctuations may affect the calculation of corporate income tax taxable income. It must be handled according to the prescribed exchange rate conversion methods.
Kevin HuangYears of service：3Customer Rating：5.0
E-Commerce Export AdvisorStart a Chat
When enterprises engage in re-export trade, it is important to distinguish between different business natures that correspond to different tax categories. For example, agency services and resale of goods have different tax treatments.
Michael ZhangYears of service：10Customer Rating：5.0
Customs Clearance SpecialistStart a Chat
Some special zones may have specific tax policies for re-export trade. If an enterprise conducts business in such areas, it needs to understand and apply these policies in detail.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
The issuance of invoices related to re-export trade must comply with regulations. Especially when taxable VAT services are involved, invoice management is a key focus for tax risk prevention and control.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
If re-export trade goods have quality issues leading to returns or exchanges, tax treatment must be carried out according to regulations, and relevant tax declarations must be adjusted promptly.