On April 5, the stamp tax preferential policy for offshore trade was recently officially piloted in the Shanghai Pilot Free Trade Zone and the Lin-gang Special Area. This is the ** tax preferential policy issued and implemented by China for offshore business. Taking the lead in piloting it in Shanghai means that China's exploration and practice of the offshore tax system has taken a substantive ** step.

　　In February this year, the Ministry of Finance and the State Taxation Administration issued the Notice on Piloting the Stamp Tax Preferential Policy for Offshore Trade in the China (Shanghai) Pilot Free Trade Zone and the Lin-gang Special Area, specifying that from April 1, 2024 to March 31, 2025, stamp tax shall be exempted on sales contracts concluded by enterprises registered in the China (Shanghai) Pilot Free Trade Zone and the Lin-gang Special Area for offshore resale transactions.

　　Tian Zhiwei, deputy director of the Institute of Public Policy and Governance at Shanghai University of Finance and Economics, said that exempting stamp tax on offshore trade can reduce the tax cost of offshore trade, is conducive to the development of China's domestic offshore trade enterprises, and also helps attract offshore trading companies from other countries to register and conduct business in China, which is of great practical significance.

　　"Benefiting from the preferential policy of stamp tax exemption on offshore resale sales contracts, the company expects to enjoy tax benefits of about 8 million yuan in a single year," said Fu Tie, tax director of Yihai Kerry Arawana Holdings Co., Ltd. "This policy has reduced operating costs and made us more confident in taking root in the free trade zone and striving for development."

　　It is understood that after the policy was introduced, the Shanghai tax authorities, on the one hand, promptly formulated tax collection and administration announcements and follow-up management plans, reviewed the general situation and transaction scale of enterprises engaged in offshore trade in the pilot free trade zone and the Lin-gang Special Area, identified the difficulties and bottlenecks in enterprises' application of the policy, and kept the mechanism for feedback on enterprise demands open. On the other hand, together with the Shanghai municipal finance department, the municipal foreign exchange management department, the relevant free trade zone management committees and other departments, they carried out policy interpretation and promoted the direct and rapid access to the policy.

　　"This pilot is an exploration and breakthrough in the offshore trade tax system, which is conducive to enhancing the international competitiveness of enterprises and helping Pudong build the core area of the 'five centers.' The Pudong tax authorities will work with relevant departments to strengthen publicity and guidance for enterprises and ensure that policy dividends are delivered accurately and directly. At the same time, we will also accumulate experience through pioneering trials to provide a practical sample for advancing research on the offshore tax system," said Wang Zhen, member of the Party Committee and deputy director of the Pudong New Area Taxation Bureau.