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Ask Matthew Breecher Your Own Question
Matthew Breecher
Matthew Breecher, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 286
Experience:  Director
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Buying new cars in the US for export. What would be the

Customer Question

buying new cars in the US for export. What would be the export tax(es)?
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: As a European company we want to buy US cars for export to China. What would be the export taxes?
JA: Is there anything else important you think the Accountant should know?
Customer: No. That's it.
Submitted: 4 months ago.
Category: Tax
Customer: replied 4 months ago.
The cars are Land Rover Range Rover vehicles built in the UK and imported into the USA for the USA market.
Expert:  Matthew Breecher replied 4 months ago.

Hello there.. As I understand it, you are looking to purchase vehicles in the US and then export to China. Is that correct?

Expert:  Matthew Breecher replied 4 months ago.

To answer your question. There is no excise tax or tariff applied by the United States on goods sold to foreign customers

Expert:  Matthew Breecher replied 4 months ago.

I hope I answered your question with sufficient detail, accuracy, and completeness based on the facts communicated. I would be happy to expand my answer should you need clarification, before you rate my response. If no additional information is needed, please rate my response, based on thoroughness and accuracy, rather than any good or bad news/content. We (the experts) are only compensated when an answer is accepted and rated with at least 3 stars; but my goal is your complete satisfaction and a 5 star rating. I appreciate your prompt response. Sincerely, ***** ***** Breecher, CPA.

Customer: replied 4 months ago.
It's all over the media that the US does not tax imports but taxes export.
In our case you are telling us no export tax on the export of automobiles?
Expert:  Matthew Breecher replied 4 months ago.

That was a misstatement of facts by a politician. The US does not tax a US corporations foreign earning until they are brought back to the US. For instance, Apple's income in China has not US tax until Apple brings the cash back to the US. But, when Apple exports products, those profit are subject to US tax.

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Conversely, foreign companies like BMW based on Germany are subject to global corporate income tax. Germany requires BMW to pay taxes on US profits even if BMW did not send cash back to Germany. Some argue this gives the US an unfair corporate advantage. But, others, and I agree, that the US corporate tax rate is too high and if we lowered the corporate tax rate, or rate on foreign earnings, large companies would bring profits back to the US for reinvestment here in the States. But, at a 35% tax rate for large corporations that is not happening.

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Year ago, George W. Bush made a one time exemption to the foreign earnings tax rate (I think reduced it to 15%) and our government was able to receive billions in tax on foreign cash brought back to the US.