国家税务总局关于境外投资者以分配利润直接投资税收抵免政策有关事项的公告国家税务总局公告2025年第18号

Core Viewpoint - The announcement by the State Taxation Administration outlines the tax credit policy for foreign investors reinvesting distributed profits directly into domestic enterprises, aiming to encourage foreign investment in China [2][3]. Summary by Sections Section 1: Policy Implementation - Foreign investors using profits to replenish registered capital or increase paid-in capital in domestic enterprises qualify as "new or increased paid-in capital" [3]. - The reinvestment period begins in the month specified in the "Profit Reinvestment Situation Table" issued by the competent commerce department [3]. Section 2: Tax Credit Calculation - Foreign investors can choose to calculate the tax credit based on either 10% of the reinvestment amount or a lower dividend tax rate as per applicable tax treaties [4]. - If multiple domestic enterprises distribute profits for reinvestment, the tax credit is calculated separately for each enterprise [4]. Section 3: Currency and Reporting - Reinvestments made in currencies other than RMB must be converted to RMB at the exchange rate on the payment date for tax credit calculations [4]. - Foreign investors must submit the "Overseas Investor Reinvestment Tax Credit Information Report" along with the "Profit Reinvestment Situation Table" to the profit distribution enterprise [4][5]. Section 4: Documentation and Compliance - When recovering investments and applying for tax credits, foreign investors must provide specific documentation to the tax authorities [5]. - The tax authorities are required to maintain a record of foreign investors benefiting from the tax credit policy and track compliance [6]. Section 5: Investment Recovery Order - The order of recovering investments involves first disposing of investments that have already enjoyed tax credits, followed by those that meet the conditions but have not yet benefited from the credits [7]. Section 6: Delegation of Authority - Foreign investors and profit distribution enterprises may appoint agents to handle matters related to the announcement, provided written authorization is submitted to the tax authorities [8]. Section 7: Effective Date - The announcement will take effect from January 1, 2025 [9].