China's Ministry of Finance and State Taxation Administration extend the preferential stamp tax policy for offshore trade in pilot free trade zones to the end of 2027
To further support the development of offshore trade in the pilot free trade zones and Hainan Free Trade Port, the Ministry of Finance and the State Taxation Administration recently jointly issued a notice, clarifying that the exemption of stamp tax on offshore resale transactions will be extended to December 31, 2027.
Policy Highlights:
Scope of Application : Enterprises registered in the following regions:
China (Shanghai) Pilot Free Trade Zone and Lingang New Area
China (Jiangsu) Pilot Free Trade Zone Suzhou Area
China (Zhejiang) Pilot Free Trade Zone
China (Fujian) Pilot Free Trade Zone Xiamen Area
China (Shandong) Pilot Free Trade Zone Qingdao Area
China (Guangdong) Pilot Free Trade Zone
Hainan Free Trade Port
Business Type : Enterprises conducting offshore resale transactions (i.e., domestic enterprises purchasing goods from non-resident enterprises and directly reselling them to another non-resident enterprise, with the goods not actually entering or leaving China's customs territory).
Policy Benefits : The sales contracts for the above-mentioned businesses are exempt from stamp tax, effective from April 1, 2025 to December 31, 2027.
Policy Significance ：
This policy reduces enterprise operating costs through tax incentives, helps pilot free trade zones deepen institutional opening up, promotes innovative development of offshore trade, and further enhances China's pivotal position in the global supply chain.
Action Suggestions for Enterprises ：
Eligible enterprises can optimize their trade structure and expand international markets by leveraging policy benefits based on their business layout. Enterprises are advised to pay attention to the details of policy implementation, strengthen communication with tax authorities, and ensure that they comply with the regulations to enjoy tax benefits.
