Entrepot trade generally does not involve value - added tax and customs duties. Entrepot trade means that the country of production and the country of consumption of goods do not directly trade goods, but trade through a third country. In terms of turnover tax, since the goods do not enter the customs territory of the country and no actual import and sales occur, it is usually not necessary to pay value - added tax. Customs duty is a tax levied on goods and articles entering and leaving the customs territory. As the goods in entrepot trade do not enter the customs territory of the country, there is no involvement of customs duty. However, stamp duty may be involved because relevant contracts are usually signed in entrepot trade. Stamp duty is a tax levied on the act of making and receiving legally valid vouchers in economic activities and economic exchanges. Contracts fall within the scope of taxable vouchers for stamp duty. Enterprises need to calculate and pay stamp duty according to the contract amount at the corresponding tax rate.
In addition, the profits obtained by enterprises from engaging in entrepot trade need to be subject to corporate income tax in accordance with the provisions of the Corporate Income Tax Law.
Professional consultant answers
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Entrepot trade generally does not involve value - added tax and customs duties. Entrepot trade means that the country of production and the country of consumption of goods do not directly trade goods, but trade through a third country. In terms of turnover tax, since the goods do not enter the customs territory of the country and no actual import and sales occur, it is usually not necessary to pay value - added tax. Customs duty is a tax levied on goods and articles entering and leaving the customs territory. As the goods in entrepot trade do not enter the customs territory of the country, there is no involvement of customs duty. However, stamp duty may be involved because relevant contracts are usually signed in entrepot trade. Stamp duty is a tax levied on the act of making and receiving legally valid vouchers in economic activities and economic exchanges. Contracts fall within the scope of taxable vouchers for stamp duty. Enterprises need to calculate and pay stamp duty according to the contract amount at the corresponding tax rate.
In addition, the profits obtained by enterprises from engaging in entrepot trade need to be subject to corporate income tax in accordance with the provisions of the Corporate Income Tax Law.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
Entrepot trade mainly involves stamp duty and corporate income tax. Stamp duty is levied according to the contract amount. For example, the stamp duty rate for purchase and sales contracts is generally 0.03%. Corporate income tax is paid according to the profits generated from entrepot trade at the applicable tax rate. The general corporate tax rate is 25%.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade basically does not involve customs duty and value - added tax. However, do not forget that the income generated from entrepot trade should be included in the taxable income of the enterprise. When calculating corporate income tax, according to relevant regulations, after deducting costs, expenses, etc., corporate income tax is paid at the tax rate.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
Entrepot trade does not pay value - added tax and customs duty. The main tax categories involved are stamp duty and corporate income tax. Enterprises should pay attention to the declaration and payment of stamp duty, calculate the tax amount accurately and in a timely manner. For corporate income tax, do a good job in cost accounting and pay taxes in compliance.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
The tax categories involved in entrepot trade are mainly stamp duty and corporate income tax. Enterprises should accurately calculate the profits from entrepot trade and pay corporate income tax as required. For contracts, they should declare and pay stamp duty in a timely manner.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
Entrepot trade usually does not involve value - added tax and customs duties. However, enterprises need to pay stamp duty when signing contracts for entrepot trade, and the income obtained from entrepot trade needs to be subject to corporate income tax.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
For entrepot trade business, value - added tax and customs duty are generally not involved. Focus on stamp duty and affix stamps according to the contract. The profits from entrepot trade are included in the taxable income of the enterprise, and corporate income tax is paid.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
Entrepot trade does not generate the obligation to pay value - added tax and customs duty. But signing contracts will involve stamp duty, and the profitable part of entrepot trade will involve corporate income tax.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
Entrepot trade generally does not need to pay value - added tax and customs duty. The main tax categories involved are stamp duty, which is calculated according to the contract amount, and corporate income tax, which is calculated and paid according to the profits from entrepot trade.