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

08 July 2025|Tax Alerts, National/Federal Taxation, Global|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, with any unused credits eligible to be carried forward beyond 2028 until fully utilized, enhancing ca…

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