Midea Hong Kong export tax rebate_Mainland export tax rebate to Hong Kong

Financial and tax synergy benefit analysis

PassedBy operating its Hong Kong subsidiary, Midea has achieved triple fiscal and tax synergy: in terms of turnover tax, re-export trade is exempt from tariffs and value-added tax; in terms of income tax, Hong Kong's 16.5% profit tax rate is more advantageous than the mainland's 25%; in terms of fund management, tax refunds can be freely converted into U.S. dollars, etc.Foreign exchange. Data from 2021 to 2023 show that this model has reduced the comprehensive tax burden by 37%.

What is more worthy of attention is the supply chain financial benefit. Midea used tax refund vouchers to apply for trade financing from banks such as HSBC, and discount profitsThe rate is 1.2-1.8 percentage points lower than that of the mainland. The "tax refund right pledge" financial product it developed has activated funds of HK$240 million in the first half of 2023 alone. The ROE of these funds reinvested in research and development reached 19.7%.

Compliance Risk Prevention and Control Points

Hong Kong Customs has become increasingly strict in inspecting "false exports", MideaFour lines of risk control and defense have been established: the logistics trajectory needs to match AIS ship positioning data, the capital flow requires the payment IP address of overseas buyers to be consistent with the registration place, the document flow implements blockchain certification, and the information flow uses AI to compare customs declaration data. In 2022, it successfully intercepted 3 customs declarations with inconsistent product names.

In terms of transfer pricing, the Group strictly follows OECD guidelines to ensure that the profit margin of its Hong Kong subsidiary is controlled within a reasonable range of 8-12%. PwC is hired to conduct BEPS risk assessments every year, with special attentionR&D expense sharing ratio. Under the newly implemented 15% global minimum tax policy in 2023, Midea has launched a BVI structure adjustment plan.

Industry Benchmarking and Trend Outlook

Compared with Gree’s tax refund channel through Macau, Midea’s Hong Kong model has a tax refund rate that is 1.5 percentage points higher, but Macau has more advantages in customs clearance efficiency in the Portuguese-speaking countries market. Haier adopts the "Hong Kong + Singapore" dualAlthough the hub strategy increases management costs, it effectively disperses geopolitical risks. These differentiated practices are worthy of reference.

With the full implementation of RCEP, Hong Kong’s tax refund policy will be upgraded to digitalization. The tax bureau plansA smart tax refund system will be launched in 2024 to realize automatic verification of customs declarations and foreign exchange data. Midea is piloting a "blockchain + tax refund" project to automatically trigger tax refund applications through smart contracts, which is expected to shorten the process to 21Tian.

Midea’s Hong Kong export tax rebate practice shows that cross-border tax planning has been upgraded from a simple tax-saving tool to a systematic project of supply chain finance, capital allocation, and risk management. Through the precise capture of policy dividends and compliance frameworkThe rigorous construction has realized the value transition from "tax refund" to "capital funds".

Under the wave of global tax reform,Enterprises need to dynamically adjust their cross-border tax structures. Lexun Financial and Taxation Consulting has the tax representative qualification registered with the Hong Kong Inland Revenue Department, and can provide customers with full-chain services from tax refund applications to BEPS compliance, helping enterprises build a safe and efficient cross-border financial and taxation system.