What Tax Types Need to Be Declared for Re-export Trade? Come and Find Out!
Resolved
Our company plans to engage in re-export trade business and is unclear about the related tax declarations. We would like to ask what tax types generally need to be declared during the re-export trade process. We hope professional individuals can provide a detailed answer, preferably explaining the general situation of each tax type, so that our company can prepare in advance before conducting business and avoid future tax issues.
Trade Expert Insights Answers
Re-export trade mainly involves the following tax types:
First is Value-Added Tax (VAT). In re-export trade, goods are not actually sold within the country, so VAT is usually not paid. However, if the company has related service income during the re-export trade process, such as agency services, it may need to pay VAT according to regulations, with a general tax rate of 6%.
Second is Stamp Duty. Re-export trade contracts signed by the enterprise fall under the category of purchase and sale contracts, and stamp duty needs to be paid at three ten-thousandths of the contract amount.
Third is Corporate Income Tax. Profits generated from re-export trade need to be included in the enterprise's taxable income and corporate income tax needs to be paid at the applicable tax rate, which is generally 25% for ordinary enterprises. Policies may vary by region, and it is recommended to further communicate and confirm with local tax authorities.
Don't forget customs duties. Although re-exported goods are not consumed in the home country, if the goods stay or are warehoused in the country's ports, some customs-like fees may be involved, but the specifics depend on local customs policies.
In some cases, surcharges may also be involved, such as urban maintenance and construction tax, and education surcharges. These are calculated based on VAT and consumption tax, with rates varying by region.
If the re-export trade involves foreign exchange receipts and payments, there may be foreign exchange management related taxes and fees. However, as long as operations are compliant, these taxes and fees are usually not much, and the focus should primarily be on common circulation taxes and income taxes.
Re-export trade may involve warehousing. If so, warehouse leasing might incur property tax, which is paid by the lessor. If there is no leasing activity, it is not involved.
Some regions may have special tax types or fees for specific re-export trade commodities, which need to be clarified in advance by consulting local tax or commerce departments.
From a financial perspective, if interest income is generated, taxes related to interest income may need to be considered, which are generally included in corporate income tax calculations.
In addition to purchase and sale contracts, related transportation contracts and other documents involved in stamp duty also need to be declared, with stamp duty paid at five ten-thousandths of the transportation fee.
If the enterprise is involved in intellectual property related authorization and usage in re-export trade, it may involve related taxes and fees, depending on the actual situation.