What tax types need to be declared for entrepot trade? Come and learn about it!
Solved#Entrepot trade#
Our company plans to carry out entrepot trade business, and we are not quite clear about the tax declaration involved in this aspect. We would like to ask what tax types generally need to be declared during the entrepot trade process? We hope that professional people can help us with a detailed answer, and it would be best if they could explain the general situation of each tax type so that our company can make preparations in advance before carrying out the business and avoid tax problems later.
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Entrepot trade mainly involves the following tax types:
First is the value-added tax. In entrepot trade, the goods are not actually sold within the territory of the country, and usually no value-added tax is paid. However, if the enterprise has relevant service income during the entrepot trade process, such as agency services, etc., it may need to pay value-added tax according to the regulations, and the general tax rate is 6%.
Secondly is the stamp duty. The entrepot trade contracts signed by the enterprise fall within the scope of purchase and sale contracts and need to pay stamp duty at three ten-thousandths of the contract amount.
Furthermore is the enterprise income tax. The profits generated from entrepot trade need to be included in the taxable income of the enterprise and pay enterprise income tax according to the applicable tax rate. The tax rate for ordinary enterprises is 25%. There may be differences in policies in different regions, and it is recommended to further communicate and confirm with the local tax authorities.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Don't forget about customs duties. Although the goods in entrepot trade are not consumed in the country, if the goods stay, are stored, etc. in the domestic ports, some fees similar to customs duties may be involved, but it depends on the local customs policies specifically.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In some cases, surtaxes may also be involved, such as urban maintenance and construction tax, education surcharges, etc. These are based on value-added tax and consumption tax as the tax calculation basis, and the tax rates vary from region to region.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
If the entrepot trade involves foreign exchange receipts and payments, there may be relevant taxes and fees related to foreign exchange management. However, generally as long as the operations are compliant, there are not many taxes and fees in this aspect, and the main focus is still on the common turnover taxes and income taxes.
Amanda YangYears of service：3Customer Rating：5.0
Cost control consultantConsult
Entrepot trade may involve the warehousing link. If there is, then the warehouse rental may generate real estate tax, which is paid by the lessor. If there is no leasing behavior, it is not involved.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
In some regions, for specific entrepot trade commodities, there may be special tax types or fees, which need to be consulted clearly with the local tax or commerce departments in advance.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
From the perspective of funds, if there is interest income generated, the relevant tax for interest income may need to be considered, and it is generally incorporated into the calculation of enterprise income tax.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
In addition to the purchase and sale contract, if relevant transportation contracts, etc. are involved, the stamp duty also needs to be declared, and the stamp is affixed at five ten-thousandths of the transportation expenses.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
If the enterprise involves the authorized use related to intellectual property rights in entrepot trade, relevant taxes and fees may be involved, and it depends on the actual situation specifically.