Starting April 1, 2025, a new tax policy in the Qianhai Shekou Free Trade Zone will exempt enterprises registered in China's (Guangdong) Free Trade Pilot Zone from stamp duty on contracts for offshore resale transactions. Effective until December 31, 2027, this preferential measure is designed to reduce trade costs and enhance the international competitiveness of businesses engaged in offshore trade.

Under the policy, “offshore resale” is defined as transactions in which a resident enterprise purchases goods from a non-resident supplier and subsequently resells them to another non-resident, with the goods never crossing China's customs boundaries. This targeted exemption directly addresses the high cost burden associated with cross-border trade documentation.

Recent data underscore the policy's significance. In 2024, Qianhai's offshore trade cross-border receipts exceeded US$1.3 billion—a figure that marked a more than threefold year-on-year increase and accounted for over 90% of Shenzhen's total offshore trade receipts. Notably, the electronic components and integrated circuits International Trading Center has emerged as a leader in this arena, highlighting the rapid industrial consolidation and growth within the region.

For non-Chinese business professionals, this development holds particular relevance. The tax exemption not only lowers operating costs for firms involved in international trade but also signals China's commitment to fostering a more business-friendly environment in one of its most dynamic trade hubs. As multinational companies, financial institutions, and legal advisors seek to navigate the complexities of global supply chains, understanding such policy shifts can offer strategic advantages in cost management and competitive positioning.