境外投资者可按当年投资额10%抵税

Core Viewpoint - The Chinese government has introduced a tax credit policy to encourage foreign investors to reinvest profits in domestic enterprises from January 1, 2025, to December 31, 2028, allowing eligible investors to offset 10% of their taxable income against their investment amount [1][2]. Group 1: Policy Details - The new policy allows foreign investors to enjoy tax credits on profits distributed by Chinese resident enterprises, applicable to direct investments such as capital increases, new establishments, and equity acquisitions, excluding certain stock purchases [2]. - The policy requires that the reinvested profits must be retained earnings distributed as dividends or similar equity investment returns, and the investment must be held for at least 5 years [2][3]. - If foreign investors withdraw their investments before the 5-year period, they will lose the tax credit benefits and must repay any deferred taxes [3]. Group 2: Historical Context - This policy builds on a previous initiative from 2017, which exempted foreign investors from withholding income tax on reinvested profits, further promoting foreign investment in China [1].