Our company intends to start an export agency business but lacks understanding of the tax implications. We would like to know which tax types are involved in export agency business, what the tax calculation basis is, and what the tax payment process entails. We hope professionals can provide detailed answers so we can operate with clarity and avoid tax-related issues.
Our company plans to engage an agent to handle export business. We would like to inquire about who is responsible for receiving the foreign exchange during the agency export process and the differences in taxation depending on the receiving party. Which way of receiving foreign exchange is more advantageous for our company? The best answer points out that there are usually two common situations in agency export: the consignor directly receives the foreign exchange and the agent receives the foreign exchange and then transfers it to the consignor. It also analyzes the differences between the two from the perspective of taxation and provides suggestions on the choice of the way of receiving foreign exchange for the company.
The company is engaged in import agency business and wants to know how the import agency income is taxed, what tax types, tax rates and taxation bases are involved. The best answer states that the import agency income mainly involves value-added tax and corporate income tax. The tax rate for general taxpayers of value-added tax is 6%, and the levy rate for small-scale taxpayers is 3%. The tax rate of corporate income tax is usually 25%, and there are respective regulations for the tax calculation bases.
Our company intends to engage an export transportation agency to handle the goods transportation matters and wants to know whether it is taxable, what types of taxes are involved and the taxation standards. The best answer states that export transportation agencies are taxable, usually involving value-added tax. The tax rate for general taxpayers is 6% and that for small-scale taxpayers is 3%. Also, based on the value-added tax, urban maintenance and construction tax, education surcharges and local education surcharges need to be paid, with specific calculations accurately made according to local regulations and the actual business.
The company exports products through Alibaba's export agency service and asks whether tax filing is required for Alibaba's export agency service and the specific tax filing operations. The best answer states that tax filing is required for Alibaba's export agency service. The consignor shall declare for tax refund and prepare materials such as the export agency agreement. Log in to the e-tax bureau to input, self-check and declare data according to the procedures. Pay attention to the declaration period and the integrity of materials.
The company plans to export products through an agency company but has doubts about foreign exchange taxation in agency export. It inquires whether the principal or the agency should receive foreign exchange tax, along with relevant regulations, operational procedures, and impacts of different collection methods. The best answer indicates that it's more common for agencies to receive foreign exchange, with taxation following the principle of "who exports, who gets tax refunds." The agency provides proof to the principal after receiving foreign exchange, enabling the principal to process tax refunds. Both parties may also agree through contracts while complying with regulations.
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Professional consultant answers
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
In export agency business, VAT is typically involved. Agency fees charged by the agency company are subject to VAT, with a rate of 6% for general taxpayers and 3% for small-scale taxpayers (currently there may be policy-based preferential rates). The tax calculation basis is the agency fee income.
For the exported goods themselves, if the client is a manufacturing enterprise using the exemption, credit, and refund method, the agency company assists in handling relevant procedures. The export process generally exempts VAT, with corresponding input tax credits offsetting payable VAT, and any uncredited amount being refunded. If the client is a trading enterprise using the exemption and refund method, the export process exempts VAT, and the corresponding input tax is refunded.
For the tax payment process, tax declarations must be filed as required, usually monthly or quarterly, by submitting relevant forms on the electronic tax platform. Tax payments can be completed through methods like online deductions.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Export agency business involves stamp duty, which is paid at a low percentage of the signed agency contract amount. The specific rate can be confirmed with the local tax authority.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the exported goods involve products subject to consumption tax, the agency company must assist the client in handling consumption tax matters. Generally, the export process exempts consumption tax and refunds the tax paid in the previous stage.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
When filing tax declarations, ensure timely and accurate data entry. If certain tax policies are unclear, you may call the 12366 tax service hotline for consultation.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Remember to retain documents such as contracts and invoices related to export agency business for tax authority inspections, as this is crucial for tax compliance.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Specific implementation may vary slightly by region, so it is advisable to consult the local tax authority for detailed policies before starting the business.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In export agency business, if it involves cross-border e-commerce exports, there may be different tax incentives. Stay updated on relevant policies.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Monitor adjustments to export tax refund rates, as these affect the tax treatment of exported goods, and adjust business strategies accordingly.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
If the agency company engages in other businesses simultaneously, ensure separate accounting for sales of different businesses to avoid tax risks.