Our company plans to conduct Thailand re-export trade business. Due to lack of experience, we hope to find a re-export trade company that has a good resource network in Thailand, standardized operating procedures, can effectively avoid trade barriers, and has reasonable and transparent fees. The best answer recommended Zhongmaoda, detailing its advantages such as an extensive resource network in Thailand, standardized operations, ability to handle trade barriers, and transparent fees.
What Taxes Do Re-export Trade Companies Need to Pay? Find Out Now!
Resolved
I recently plan to establish a re-export trade company, but I'm not very clear about the tax aspects. I'd like to ask if re-export trade companies need to pay taxes? If so, what types of taxes are involved? I hope a professional can help answer these questions so I can prepare in advance and avoid future tax issues.
Trade Expert Insights Answers
Daniel KimYears of service：4Customer Rating：5.0
Commodity Inspection and Quarantine ConsultantStart a Chat
Re-export trade companies are required to pay taxes. Generally, re-export trade involves several types of taxes: First, Value Added Tax (VAT). In re-export trade, if the goods do not undergo substantial processing or value-added activities within China, domestic VAT is usually not levied, but this still needs to be determined based on actual business situations and tax regulations. Second, Customs Duties. Since the goods do not enter the customs territory of the re-exporting country, its domestic customs duties are generally not involved, but attention should be paid to the customs policies of the goods' country of origin and final destination. In addition, Corporate Income Tax also needs attention; profits obtained by re-export trade companies must be paid according to regulations, usually calculated as taxable income multiplied by the applicable tax rate. Furthermore, if relevant contracts are signed, such as purchase and sales contracts, Stamp Duty may also be required, payable at a certain percentage of the contract amount. Tax situations may vary depending on different regions and business details, so it is advisable to communicate with local tax authorities for confirmation.
Olivia LiuYears of service：6Customer Rating：5.0
Foreign Exchange Risk ManagerStart a Chat
If a re-export trade company involves warehousing services, there might be storage-related taxes and fees. However, if it's purely re-export trade where goods do not land for storage, these taxes and fees may not be a concern. At the same time, it's important to note that different categories of goods may correspond to different tax requirements; for example, special commodities might incur additional taxes.
Sophia WangYears of service：6Customer Rating：5.0
International Logistics CoordinatorStart a Chat
In re-export trade, if the transportation segment is arranged by the re-export trade company, the transportation contract might involve stamp duty. Moreover, if communication with foreign clients involves financial services, such as international remittance fees, it might have tax implications, though the specific situation depends on actual business operations.
David ChenYears of service：10Customer Rating：5.0
Trade Compliance AdvisorStart a Chat
In re-export trade, if the business involves intangible assets such as trademark authorization or technology licensing, related taxes and fees may also be incurred. Additionally, even though goods do not enter the re-exporting country's customs territory, improper handling of customs declaration and other procedures could lead to potential tax risks.
Anthony LuoYears of service：10Customer Rating：5.0
Trade Compliance ExpertStart a Chat
If a re-export trade company has commission expenses or income in its operations, this part also needs tax attention. Commission income should be included in taxable income for corporate income tax, while commission expenses, if compliant with regulations, can be deducted before tax.
Emma ZhaoYears of service：3Customer Rating：5.0
Export Documentation SpecialistStart a Chat
If a re-export trade company has an office space locally, it might involve local taxes such as property tax. However, whether it is payable and the payment standards depend on local tax policies.
Linda GuoYears of service：3Customer Rating：5.0
Trade Dispute MediatorStart a Chat
From an exchange perspective, foreign exchange receipts and payments involved in re-export trade, if handled improperly, could lead to tax risks. For example, aspects like determining exchange rates for foreign currency settlements need to be handled according to regulations to avoid tax issues.
Thomas LiYears of service：7Customer Rating：5.0
Import Licensing AdvisorStart a Chat
In the procurement phase, if a re-export trade company obtains non-compliant invoices, related costs cannot be deducted before corporate income tax. Therefore, invoice management is also crucial for tax purposes.
Richard WuYears of service：8Customer Rating：5.0
Global Trade Operations ExpertStart a Chat
If a re-export trade company has import and export operating rights, for some specific commodities, the country may have preferential tax policies or restrictive policies. It is important to pay timely attention and comply with requirements.
Robert TanYears of service：5Customer Rating：5.0
International Market Development AdvisorStart a Chat
In the course of its business, a re-export trade company must properly retain various business vouchers, such as contracts, invoices, and shipping documents, to clearly demonstrate the authenticity of the business and tax compliance during tax inspections.