China exempts foreign investors from withholding tax on certain re-investments
30 Sep 2018
On 30 September 2018, the Ministry of Finance and three other government departments jointly announced a circular, which has widened the policy exempting overseas investors from withholding income tax on the re-investments made in the country. The exemption is effective from 1 January 2018, meaning taxes already paid this year will be refunded.
The scope of the tax exemption has been expanded to all sectors where foreign investment is no longer prohibited. Reinvestment of the profits does not include purchases of listed companies' shares, except qualified strategic investments.
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Promotion and facilitation (Investment incentives)
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