Shanghai Makes Clarifications for the Implementation of Preferential Stamp Tax Policy on Offshore Trade

To implement the MOF and STA No.8 (2024) Document, Shanghai Municipal Tax Service, State Taxation Administration and the other three departments in Shanghai jointly released the Announcement on Matters Concerning the Pilot Implementation of Preferential Stamp Tax Policy on Offshore Trade in China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area (the “Announcement ”), which will take effect on April 1, 2024 and remain valid until March 31, 2025.

According to the Announcement, taxpayers who enter into the contract of offshore resale business carried out by the enterprises registered in China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area are eligible for the exemption from stamp duties. Resident and non-resident enterprises are identified based on their registered countries or regions. A taxpayer may get access to the preferential stamp tax policy on offshore trade through “self-assessment and application, with related materials retained for further reference”, and it is legally responsible for the authenticity, completeness and legitimacy of the retained materials.