【国际税收·轻松办税】境外投资者以分配利润直接投资税收抵免政策解读

Core Viewpoint - The new tax credit policy for foreign investors allows them to enjoy a 10% tax credit on reinvested profits from January 1, 2025, to December 31, 2028, while maintaining the effectiveness of the deferred tax policy [8][17]. Summary by Relevant Sections Tax Credit Policy - Foreign investors can receive a tax credit of 10% on the amount of reinvested profits during the specified period, with any unused credit eligible for carryover to future years [8][17]. - The tax credit applies to profits distributed by Chinese resident enterprises, which are reinvested in eligible domestic investments [5][12]. Investment Conditions - The profits must be derived from equity investments such as dividends and retained earnings from Chinese resident enterprises [5]. - The reinvestment must be held for a minimum of 5 years (60 months) [6][12]. - The investment must be in industries listed in the "Encouraged Foreign Investment Industry Catalog" [5][12]. Application Process - Foreign investors must submit relevant information through the invested enterprise to the local commerce department for verification [19][20]. - Upon approval, the invested enterprise will provide a "Profit Reinvestment Situation Table" to the foreign investor [19][20]. Tax Credit Adjustment - If a foreign investor withdraws part of the reinvested capital before the 5-year holding period, the tax credit amount will be adjusted accordingly [9][12]. - For example, if a foreign investor reinvests 10 million yuan and later withdraws 7 million yuan, the tax credit will be reduced by 700,000 yuan [9]. Documentation Requirements - To claim the tax credit, foreign investors must submit several documents, including the "China Tax Withholding Report" and the "Foreign Investor Reinvestment Tax Credit Information Report" [21][22]. - The invested enterprise must also report the necessary information to the tax authorities [22].