Recently, the Ministry of Finance and the State Taxation Administration of the PRC have jointly issued the Circular on Continuing to Implement Preferential Stamp Duty Policy for Offshore Trade (Caishui [2025] No. 10), which shall be implemented from 1 April 2025 to 31 December 2027.

According to the Circular, contracts for offshore resale transactions conducted by enterprises registered in the following regions will be exempt from stamp duty.

1. China (Shanghai) Pilot Free Trade Zone and its Lin-gang Special Area
2. Suzhou Area of the China (Jiangsu) Pilot Free Trade Zone
3. China (Zhejiang) Pilot Free Trade Zone
4. Xiamen Area of the China (Fujian) Pilot Free Trade Zone
5. Qingdao Area of the China (Shandong) Pilot Free Trade Zone
6. China (Guangdong) Pilot Free Trade Zone
7. Hainan Free Trade Port

Offshore resale transaction or offshore trade mentioned in the above Circular refer to transactions where a resident enterprise purchases goods from a non-resident enterprise and resells them to another non-resident enterprise and the goods have never physically entered or leaved China's customs territory.

Before the issuance of the above Circular, the Ministry of Finance and the State Taxation Administration of the PRC released a Circular on Pilot Preferential Stamp Duty Policy for Offshore Trade in China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area (Caishui [2024] No. 8) on 6 February 2024 to pilot the stamp duty exemption policy during the period from 1 April 2024 to 31 March 2025. It was the first preferential stamp duty policy for offshore trade in China.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.