The contract note of offshore resale business carried out by the enterprises registered in China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone will be exempted from stamp duties, according to a circular released by the Ministry of Finance and the State Administration of Taxation on Feb 6.

The offshore resale business refers to the transaction in which a resident enterprise purchases goods from a nonresident enterprise and then resells them to another nonresident enterprise without making the goods enter or exit China's customs territory.

The preferential tax policy is rolled out to better support the development of offshore trade in the FTZ and will be effective from Apr 1 to Mar 31, 2025.