SHANGHAI, April 2 (Xinhua Sang Tong) -- Starting from April 1, the preferential policy on stamp duty for offshore trade has been formally piloted in the Shanghai Pilot Free Trade Zone (SFTZ) and Lingang New Area. This is China's offshore business for the implementation of the first tax incentives issued in Shanghai pilot means that China's exploration and practice of the offshore tax system has taken a substantial first step.

  In February this year, the Ministry of Finance and the State Administration of Taxation issued the Circular on the Preferential Policies on Stamp Duty for Pilot Offshore Trade in the China (Shanghai) Pilot Free Trade Zone and the New Area of Lingang, making it clear that from April 1, 2024 to March 31, 2025, the contracts of sale and purchase established by enterprises registered in the China (Shanghai) Pilot Free Trade Zone and the new area of Lingang to carry out offshore resale sales and purchases are exempted from the levy of stamp duty. Stamp Duty.

  As China's economy continues to develop and the level of trade facilitation continues to rise, offshore trade is developing rapidly. Exploring and practicing tax support policies for offshore trade will help reduce the operating costs of enterprises, promote the internationalization process of the Pilot Free Trade Zone, and further enhance the competitiveness of China's Pilot Free Trade Zone in the global trade pattern.

  "Offshore trade is different from ordinary forms of trade, requiring onshore enterprises to sign contracts with offshore suppliers of goods and offshore demanders of goods respectively, and the amount of contracts signed is more than that of ordinary forms of trade." Tian Zhiwei, vice president of the Institute of Public Policy and Governance of Shanghai University of Finance and Economics, introduced that tax exemption for offshore trade stamp duty is conducive to the development of China's local offshore trade enterprises, as well as to attracting offshore trade companies from other countries to register and conduct business in China.

  According to the relevant provisions of the Stamp Duty Law of the People's Republic of China, enterprises engaged in offshore resale trade, in the enterprise procurement, sales of two links need to be written on the contract in accordance with the contract amount of three ten thousandths of the stamp duty levied on the contract of sale.

  "Benefiting from the preferential policy of exempting stamp duty on offshore resale contracts, the enterprise expects to enjoy tax benefits of about 8 million yuan in just one year." Fu Tie, Tax Director of Yihai Kerry Golden Dragon Fish Cereals and Oils Foodstuffs Company Limited, said, "This policy reduces the operating costs and makes us more confident in rooting in the Pilot Free Trade Zone for development."

  It is understood that after the introduction of the policy, the Shanghai tax department on the one hand, the timely development of the Shanghai Levy Management Announcement and follow-up management program, combing the Pilot Free Trade Zone and the Lingang new area engaged in offshore trade enterprise profile and transaction size, mapping the application of the policy of the enterprise difficulties blockage, smooth feedback mechanism of enterprise demands; on the other hand, together with the relevant departments, the comprehensive use of a variety of forms to carry out the interpretation of the policy, and strengthened to promote the policy directly to the enjoyment of the fast.