The Ministry of Finance and the State Taxation Administration of China issued a notice on piloting stamp tax incentive policies for offshore trade in the China (Shanghai) Pilot Free Trade Zone and Lin-gang Special Area on Feb 18, 2024, granting stamp tax exemption to enterprises registered in these regions for sales contracts involved in offshore resale transactions.

In response to this policy, the Lin-gang Special Area Cross-border Service Center promptly expanded its service channels by launching a stamp tax declaration management system. This system is integrated with follow-up management conducted by the Lin-gang Special Area Administration, facilitating tax administration oversight by the tax bureau.

During the second and third quarters of 2024, the center provided guidance and follow-up management to nearly 100 enterprises benefiting from the policy, with over 13 million yuan ($1.79 million) in tax reductions and exemptions verified and completed.

To further address enterprises' difficulties, the center introduced a blockchain-based "Cloud Document Center" feature, perfecting the offshore trade stamp tax declaration process. By uploading business documents and audit trails onto the blockchain during the application process, every step of the application made through the center is digitally recorded, resolving inconsistencies between tax declarations based on contract terms and verifications of cross-border payment and receipt transactions for offshore business authenticity.

As an initial pilot after the function's launch, 57 stamp tax declaration records have been stored, involving 57 enterprises and 486 documents, with contracts, invoices, bills of lading, and warehouse receipts uploaded onto the blockchain.

Looking ahead, the "Cloud Document Center" will see its functionality expanded. Regulatory services will benefit from the retention of complete closed-loop management data on the blockchain, forming a solid foundation for future analysis of offshore policy impacts. In banking, blockchain data will bolster transaction credibility and legality during reviews or authenticity questions, preventing duplicate use of documents and ensuring their uniqueness and security. For enterprises, it will enhance policy implementation efficiency and transparency, fostering a more efficient, intelligent, and sustainable offshore trade industry in Lin-gang Special Area.