China has announced the continuation of the stamp duty exemption policy for offshore trade transactions, in a bid to further support the development of free trade zones.
According to the Ministry of Finance, companies registered in six pilot free trade zones, including the China (Shanghai) Free Trade Zone and Lin-gang Special Area, as well as the Hainan Free Trade Port, will be exempt from paying stamp duty on contracts related to offshore re-export trade.
The policy will take effect from April 1 and remain in place until December 31, 2027.
Offshore re-export trade refers to transactions where a resident company purchases goods from a non-resident enterprise and then resells them to another non-resident enterprise, without the goods physically entering or exiting China’s customs territory.
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