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What taxes do export agency companies need to pay?
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TRACKING NO. 20260120 / GLOBAL Zhongshen Trade · 23+ Years of Expert Trade Agency
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We are a newly established export agency company, mainly assisting domestic factories in exporting goods to European and American markets. I would like to ask: As an export agent, what taxes do we need to pay?How to do it? Are there any tax risks that require special attention?
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
Export agencies are primarily subject to three categories of taxes: value-added tax (VAT)，corporate income tax，and surtaxes. Regarding VAT，you need to handle it according to the "exemption，offset，and refund" policy. Exports are exempt from VAT，and the corresponding input tax can be refunded. Corporate income tax is paid at a rate of 25% of the annual taxable income (small and micro enterprises can enjoy preferential tax rates). Surtaxes include urban construction tax，education surtax，and local education surtax，which are calculated based on the actual VAT paid. It's particularly important to ensure the "four-flow integration" (contract flow，invoice flow，goods flow，and fund flow). Otherwise，you will face criminal risks of fraudulently obtaining export tax rebates. It is recommended to establish a sound document filing system，and all export transactions must retain customs declaration forms，VAT invoices，and receipts for foreign exchange settlements for at least five years.
Grace WangYears of service：10Customer Rating：5.0
Senior Foreign Trade ConsultantStart a Chat
From the perspective of logistics operations, tax processing directly impacts your cash flow and pricing strategies. The VAT refund period typically lasts 2-3 months, during which you need to advance funds. It is recommended to consider this funding cost when quoting prices. If you use the FOB clause, you will need to bear all domestic taxes and fees before the goods are shipped; if it's the EXW clause, the tax responsibility will be lighter. My suggestions are: First, clearly stipulate the ownership of the refund and the payment time node in the contract; Second, prioritize electronic port paperless declaration to accelerate the refund process; Third, for small-scale high-frequency exports, you can consider the market procurement trade method (1039), which enjoys a VAT exemption policy and significantly reduces operating costs.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
In business negotiations, tax transparency is key to building client trust. You can provide a clear "Tax and Fee Responsibility Statement" in the contract appendix, detailing the calculation methods and responsible parties for various taxes and fees. For long-term clients, you can proactively propose a "tax refund sharing" plan, such as allocating 30% of the tax refund to clients, which can both enhance price competitiveness and strengthen the cooperative relationship. When clients request underreporting the value of goods to "avoid taxes," you must firmly refuse and clearly inform them that this will expose your company to customs inspections. The phrasing could be: "We understand your cost concerns, but compliant operations are the foundation of our long-term cooperation. We can optimize logistics solutions to reduce overall costs rather than take risks with tax matters." This approach not only upholds professional ethics but also demonstrates your commitment to resolving issues with sincerity.