Do you know whether transit trade needs to pay taxes?
Solved#Other issues#
I'm planning to engage in transit trade business recently, and I don't know much about the tax situation in this regard. I'd like to ask whether transit trade needs to pay taxes? If so, what types of taxes are usually involved? Will I not have to pay domestic taxes just because the goods do not enter the domestic customs territory? I hope friends who are knowledgeable in this area can give me a detailed explanation. This is very important for me to carry out my business. Thank you!
Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Whether transit trade needs to pay taxes depends on specific circumstances. Generally speaking, the goods in transit trade do not enter the domestic customs territory, and the circulation process does not involve import tariffs and import value-added taxes. However, if there is value-added and profit is obtained during the transit trade process, it may involve corporate income tax. Corporate income tax is usually levied according to the taxable income of the enterprise, and the tax rate is generally 25%. Small and micro-profit enterprises that meet the conditions may apply a lower tax rate.
In addition, if relevant contracts are signed, stamp duty may also be involved, such as purchase and sale contracts, which usually require stamping according to a certain proportion of the contract amount. The specific tax situation will also vary due to different regional policies. It is recommended that you consult the local tax authorities in detail before carrying out your business to ensure compliant tax payment.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Although the goods in transit trade do not enter the country, if there is income, the income tax issue should be considered just like in ordinary trade, and it should be declared and paid according to the regulations.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Don't ignore the stamp duty. Once the contract is signed, stamp duty should be paid according to the regulations, and the proportion depends on the type of contract.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
If transit trade involves services, such as trade agency services, value-added tax may also be involved, so pay attention.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
If there are situations such as commission payment in transit trade, relevant tax treatment should also be noted, and it should be seen whether there is an obligation to withhold and remit taxes.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Different regions have different tax management for transit trade. Some places may have looser policies, while some are stricter. It is necessary to understand the local policies in advance.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If transit trade involves foreign exchange receipts and payments, relevant regulations on foreign exchange management should also be followed, which is sometimes related to taxation.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Pay attention to the storage situation of transit trade goods in the third country. There may be relevant taxes and fees locally, so don't overlook this consideration.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
From the perspective of accounting, the income and expenditure of transit trade should be accurately recorded to facilitate subsequent tax declaration and ensure clarity and compliance.