Core Insights - The article emphasizes the importance of understanding back-end "related transactions" in cross-border e-commerce, which can significantly impact profitability and tax obligations [2][25] - It highlights the upcoming policy changes in 2025 that will affect tax regulations and compliance requirements for cross-border e-commerce businesses [3][10] Group 1: Profit Optimization Strategies - Many cross-border e-commerce sellers initially face challenges with direct transactions, leading to high tax burdens and reduced profits [5][7] - A "triangular structure" is recommended, where a Chinese company acts as a manager, a Hong Kong company serves as a profit center, and an overseas subsidiary handles local distribution, effectively optimizing profit distribution [7][12] - The article discusses the implementation of a "smart pricing engine" that calculates transaction prices based on costs and local tax rates, ensuring compliance and profit optimization across the structure [13] Group 2: Compliance and Regulatory Changes - Starting January 2025, China will implement a "tax refund upon departure" policy for cross-border e-commerce B2B models, allowing businesses to receive tax refunds more quickly, provided they comply with specific regulations [10] - Hong Kong will tighten regulations on offshore profit exemptions and enforce a global minimum tax rate of 15%, requiring companies to maintain proper documentation and operational legitimacy [11][19] - The article warns of the risks associated with non-compliance, including potential tax audits and penalties for discrepancies in reported sales data [16][20] Group 3: Common Pitfalls in Related Transactions - The article identifies three major pitfalls in related transactions: "transfer pricing," issues with "export tax refunds," and "data silos" that can lead to compliance failures [18][21][22] - It suggests using automated systems to ensure compliance with export tax refund requirements and to avoid errors in transaction pricing that could trigger audits [21][23] - The integration of a "global related transaction hub system" is recommended to streamline data management and compliance, enhancing operational efficiency [23][25]