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Can I enjoy tax benefits for the income from export agency services?
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We are a companyOutput: An agency company helps factories export goods and charges an agency fee. May we ask whether the agency fee income we receive qualifies for the income tax incentives for export enterprises? If so, what conditions must be met? Could this be considered a risk of issuing invoices for fictitious transactions by the tax authorities?
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
The income from agency fees is not eligible for the preferential income tax treatment for exported goodsThis is a red line in tax compliance. According to current tax laws，only export operations involving the transfer of ownership of goods can apply for tax refunds or tax exemptions. If your company only charges agency fees，it falls under "brokerage and agency services"，which are subject to a 6% value-added tax (VAT) and normal corporate income tax payments. To enjoy tax benefits，the following conditions must be met simultaneously。
1. Your company must sign a sales contract with the foreign party。
2. You must obtain ownership of the goods (with the purchase invoice issued to your company)。
3. The consignor on the customs declaration must be your company。
4. The foreign exchange must be directly deposited into your company's account.
Risk Warning: If the factory requires you to engage in "fake agency，real sales" for tax rebate purposes，but the ownership of the goods has not actually been transferred，you may be deemed to have issued false invoices or committed tax fraud，and face fines，late payment penalties，or even criminal charges. It is recommended to retain a complete set of agency agreements，logistics documents，and records of fund flows to prepare for tax inspections.
Lucas LiuYears of service：8Customer Rating：5.0
Senior Operations ConsultantStart a Chat
From the perspective of logistics operations, this is actually a question of "mode selection". If you want to enjoy tax rebates, you have to change the logistics structure:
It is necessary to ensure that the ownership of the goods flows through your companyOperation Suggestions: Adopt the "buy-out agency" model: Sign a purchase contract with the factory, obtain ownership of the goods, and then export them. This involves adding a warehouse transfer step in the logistics process, but the tax rebate benefits for high-tax-rebate products (such as 13%) may far outweigh the logistics costs. The documents must comply with the "three-flow unification" principle: the consignor on the customs declaration, bill of lading, and foreign exchange settlement form must all be your company, and the product names and quantities on the purchase invoice must match those on the customs declaration exactly. It is recommended to use EXW or FCA terms to control ownership of the goods from the factory warehouse. If you insist on a pure agency model, you should not bother with tax rebates.
Focus your energy on logistics optimization, such as consolidated cargo and centralized customs declarationThe cost savings squeezed out can also be considered a form of hidden discount.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
When negotiating cooperation with factories, don't just focus on the agency fee. Instead, factor in tax costs into the quote and redesign the business model. Here's a direct sales pitch template: "Mr. Wang, we charge a 3% service fee for pure agency services, but offer no tax refund benefits. If your company wants to claim tax refunds, we can adopt a supply chain service model: you sell the goods to us, and we add a 5% export surcharge. The tax refund amount will be negotiated as a profit-sharing arrangement. This way, you'll receive most of the tax refunds, and we'll also make a profit - a win-win situation."
Contract terms should be clearly defined: specify that "the agency fee does not include tax benefits" to avoid future disputes. If the factory insists on tax refunds, stipulate that "the service fee rate will fluctuate with the tax refund rate" to transfer tax risks. Include a "tax planning service fee" in the quote to demonstrate professionalism. Remember:
The client wants to feel like they're getting a good deal.
You helped the factory calculate the tax rebate account clearly, allowing them to see the real benefits, even if the agency fee is higher, they are still willing to pay. The key is to transform the "tax cost" into "professional service value" when discussing it.