财政部 税务总局 商务部关于境外投资者以分配利润直接投资税收抵免政策的公告财政部 税务总局 商务部公告2025年第2号

Core Viewpoint - The announcement outlines a tax credit policy for foreign investors reinvesting profits distributed by Chinese resident enterprises, effective from January 1, 2025, to December 31, 2028, allowing a 10% tax credit on the reinvestment amount against the annual taxable income of the foreign investor [3][10]. Summary by Sections Tax Credit Policy - Foreign investors can receive a tax credit of 10% on the amount reinvested in China from profits distributed by Chinese resident enterprises during the specified period [3][10]. - If the applicable tax rate under tax treaties with foreign governments is lower than 10%, the treaty rate will apply [3]. Conditions for Eligibility - The profits must be actual distributions from Chinese resident enterprises, classified as dividends or similar equity income [3]. - Eligible reinvestments include capital increases, new establishments, and equity acquisitions, excluding purchases of listed company shares (with some strategic investment exceptions) [3][4]. - The reinvested profits must be in cash or directly transferred assets without intermediary holding [6]. Investment Duration and Compliance - Foreign investors must hold the reinvested assets for at least 5 years (60 months) to qualify for the tax credit [5]. - Upon withdrawal of investments before the 5-year period, investors must pay deferred taxes and may have their tax credit reduced proportionally [7]. Reporting and Verification - Foreign investors must report relevant information through the unified platform managed by the Ministry of Commerce, including details about the reinvestment and the involved enterprises [8]. - Local commerce departments will verify the submitted information and confirm eligibility for the tax credit [8]. Special Conditions - If the invested enterprises undergo restructuring that meets specific criteria, they can continue to enjoy the tax credit [9]. - The policy will be enforced from January 1, 2025, to December 31, 2028, with provisions for any remaining tax credit balances to be utilized until exhausted [10].