How should transit trade carry out tax declaration? Come and teach me quickly!
Solved#Entrepot trade#
Our company has recently been involved in transit trade business. We haven't dealt with tax declaration in this regard before and are completely at a loss. I'd like to ask, how exactly should transit trade carry out tax declaration? What types of taxes are involved? What is the declaration process like? Are there any places that need special attention? I hope experienced friends or professionals can explain in detail. Thank you very much!
Professional consultant answers
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Tax declaration for transit trade should be considered according to different types of taxes. Regarding turnover tax, since the goods in transit trade are not declared for import in China, value-added tax and consumption tax are not levied. However, the income from transit trade needs to be taxed according to regulations. Usually, the taxable income is calculated as the balance after deducting the relevant and reasonable expenses related to obtaining this income from the full amount of income.
In terms of the declaration process, generally, within the stipulated tax declaration period, through the electronic tax bureau or by going to the tax service hall, fill in the corporate income tax return form truthfully. Pay special attention to keeping contracts, documents, records of receipt and payment of foreign exchange, etc. related to transit trade for the verification of the tax authorities. Meanwhile, accurately calculate the income and cost of transit trade to avoid tax risks.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Don't ignore the stamp duty involved in transit trade either. Affix stamps according to the nature of relevant contracts. For example, for purchase and sale contracts, affix stamps at three ten-thousandths of the contract amount.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
When making tax declarations, remember to distinguish between domestic transactions and overseas transactions. Generally, there is no turnover tax for the overseas part. If services, etc. are involved domestically, pay attention to whether it complies with relevant tax exemption or levy regulations.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Enterprises need to accurately define the nature of transit trade income to prevent tax declaration errors caused by incorrect classification, which may then lead to tax risks.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
When declaring transit trade, don't make mistakes in exchange rate conversion. Calculate the taxable income in RMB by converting it according to the central parity of the RMB exchange rate on the date when the tax liability arises.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
Pay attention to changes in local tax policies. Different regions may have differences in the details of tax declaration for transit trade. Timely understanding can avoid declaration mistakes.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
If transit trade involves related-party transactions, the pricing should comply with the arm's length principle. Otherwise, the tax authorities have the right to adjust the taxable amount.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The deduction of related expenses in transit trade should comply with tax laws. Unreasonable expenses cannot be deducted before tax, which will affect the corporate income tax declaration.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Carefully check all data before declaration to ensure that data such as income, cost, and expense are accurate and error-free, and improve the quality of declaration.