China explains the mechanisms of tax exemption for foreign investors
BEIJING, August 2 / WAM / The National Tax Authority in China issued detailed executive rules that explain to foreign investors how to benefit from tax exemptions when they invest their profits within the country, in a move aimed at enhancing foreign investment.
The new China News Agency, “Xinhua”, said that these rules come to activate the pre -announced tax incentives, and grant foreign investors to exempt 10% of corporate income tax on the profits that are directly invested in China, as this policy applies from January 1, 2025 to December 31, 2028.
The new guidelines identified the operational frameworks of these incentives, and included an explanation for the period of retention required to re -invest, the method of calculating the tax amount of credit, and the necessary procedures to demand exemptions.
The authority also indicated that the profits used to increase the paid -up capital or capital reserves are considered eligible to benefit from these incentives.
– Khal –
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