Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website Xinhua Silk Road - Belt and Road Portal, China's silk road economic belt and 21st Century Maritime Silk Road Website
Subscribe CustomBlackClose

Belt & Road Weekly Subscription Form

download_pop

Research ReportCustomBlackClose

The full edition of the report is available at Xinhua Silk Road Database. You can click the “Table of Content” to have a general understanding of it.

Click on the button below to create your account and get immediate access to thousands of articles.

Start a Free Trial

Xinhua Silk Road Database
Policy

China clarifies tax incentives for foreign investors reinvesting dividends

August 01, 2025


Abstract : China's State Taxation Administration (STA) has released detailed implementation rules for foreign investors claiming tax credits on reinvested dividends, providing operational guidelines for preferential tax treatment under a recently released policy.

BEIJING, Aug. 1 (Xinhua) -- China's State Taxation Administration (STA) has released detailed implementation rules for foreign investors claiming tax credits on reinvested dividends, providing operational guidelines for preferential tax treatment under a recently released policy.

In June, China's finance, taxation and commerce authorities unveiled a tax incentive granting foreign investors a 10 percent corporate income tax credit on direct domestic investments funded by dividends from Chinese resident companies.

The measure, effective as of Jan. 1, 2025 and running through Dec. 31, 2028 -- allows unused credits to be carried forward and applies lower rates under existing tax treaties.

According to a notice released by the STA on Thursday, profits used to pay up subscribed registered capital or increase paid-in capital or capital reserves, qualify as eligible reinvestment.

The STA notice also clarified executable frameworks for this tax incentive, including definition of the holding period for reinvestment by foreign investors, the calculation method for the determination of the tax credit amount, and procedures for foreign investors to claim tax credits.

China, notably, has been offering tax incentives to boost overseas investment. Foreign reinvestment in China benefiting from a tax deferral policy saw rapid growth in 2024, earlier data from the STA showed.

Scan the QR code and push it to your mobile phone

Keyword: foreign investors tax incentives

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to [email protected] and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial

Ask Us A Question belt & road login close

If you have any questions, please enter them in the box below.

Identifying code Reload

Write to Us belt & road login close

Do you want to be a contributor to Xinhua Silk Road and tell us your Belt & Road story? Send your articles to silkroadweekly@xinhua.org and share your stories with more people.

Click on the button below to create your account and get im http://img.silkroad.news.cn/templates/silkroad/en2017te access to thousands of articles.

Start a Free Trial