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Mainland China announces tax credit policy for foreign investors making direct reinvestments

|Tax Alerts, National/Federal Taxation, G ...|China
China

  • On 27 June 2025, China's Ministry of Finance, State Taxation Administration and Ministry of Commerce announced a 10% tax credit for qualified foreign investors who directly reinvest profits from their Chinese subsidiaries in Mainland China, effective retroactively from 1 January 2025 through 31 December 2028.
  • Foreign investors can offset their Chinese tax payables against the reinvestment amount, w…

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