【涨知识】境外投资者以分配利润直接投资税收抵免政策热点解答

Core Viewpoint - The article discusses the new tax credit policy for foreign investors reinvesting distributed profits in China, effective from January 1, 2025, to December 31, 2028, allowing a 10% tax credit on the reinvested amount [2][3]. Summary by Sections Tax Credit Policy Details - Foreign investors can use profits distributed by Chinese resident enterprises for direct investment in China, eligible for a 10% tax credit on the investment amount, with any unused credits allowed to be carried forward [2][3]. - The policy applies to profits classified as dividends or similar equity investments from Chinese resident enterprises [3]. Eligibility Criteria - The profits must be actual distributions from Chinese resident enterprises and used for direct investments such as capital increases, new establishments, or equity acquisitions, excluding certain stock purchases [3][4]. - Investments must be in industries listed in the "Encouraged Foreign Investment Industry Catalog" and held for at least 5 years [4]. Application Process - Eligible foreign investors must submit their applications through the invested enterprise to the local commerce authority, providing necessary documentation and information [8]. - Upon approval, the foreign investor must fill out specific forms to claim the tax credit when filing taxes [10]. Handling of Withdrawals - If a foreign investor withdraws their investment after 5 years, they must report and pay any deferred taxes within 7 days [9]. - If the investment is withdrawn before 5 years, the investor must reduce their tax credit eligibility and pay any excess credits used [11]. Transitional Provisions - Investments made between January 1, 2025, and the announcement date can apply for retroactive tax credits, but investments prior to January 1, 2025, are not eligible [8].