Announcement of the State Taxation Administration on Matters Concerning Tax Credits for Overseas Investors Making Direct Investments with Distributed Profits

China has unveiled detailed guidance on a new tax credit policy aimed at encouraging foreign investors to reinvest their profits in the country, as it steps up efforts to stabilize foreign capital inflows and boost long-term investment amid rising global economic uncertainties.

Issuing Authority: State Taxation Administration

Issued on: July 31, 2025

Effective Date: Jan 1, 2025

Applicable Area: Nation-wide

Type: National Regulation & Rule

 

Chinese

 

• Tax credit policy to encourage foreign investment

 

• FAQs: Deferred taxation for reinvestment