中国三部门公布境外投资者以分配利润直接投资税收抵免政策

Core Points - The Chinese Ministry of Finance, State Taxation Administration, and Ministry of Commerce announced a tax credit policy for foreign investors using distributed profits for direct investment in China from January 1, 2025, to December 31, 2028 [1] - Foreign investors can offset 10% of their taxable income for the amount invested, with any unused credits allowed to be carried forward to future years [1] - The policy applies to profits distributed by Chinese resident enterprises and requires that the reinvestment meets specific conditions [1] Summary by Categories - Policy Announcement - The announcement details a new tax credit policy for foreign investors in China [1] - The policy is effective from January 1, 2025, to December 31, 2028 [1] - Tax Credit Details - Foreign investors can receive a tax credit of 10% of the amount invested from distributed profits [1] - Any unused tax credits can be carried forward to subsequent years [1] - Eligibility Criteria - Profits must be actual distributions from Chinese resident enterprises [1] - Investments must include capital increases, new projects, or equity acquisitions, excluding certain stock purchases [1] - The invested enterprise must operate in industries listed in the "Encouraged Foreign Investment Industry Catalog" [1] - A minimum holding period of 5 years (60 months) is required for the reinvestment [1] - Cash investments must be directly transferred from the profit distribution enterprise to the invested enterprise [1] - Non-cash investments must have ownership transferred directly without intermediary holding [1]