Cai Shui Circular on Issues Concerning the Policy of Provisional Deferral of Withholding Income Tax on Direct Investments Made by Foreign Investors Using Distributed Profits Announcement on Issues Relevant to the Implementation of the Policy of Provisional Deferral of Withholding Income Tax on Direct Investments Made by Foreign Investors Using Distributed Profits WHY DID CHINA RELEASE THIS TAX DEFERRAL POLICY?
New tax incentive for overseas investors investing in the PRC
A new tax deferral policy providing a temporary waiver of EIT to overseas investors investing in encouraged industries is aimed at attracting more foreign capital. If considering expanding further into the PRC, overseas companies should comprehensively review and readjust their current investment strategies to ensure they can benefit from the new tax deferral.
By
Susan Mok