China Lures Foreign Investors with Tax Breaks for Reinvestment
China has unveiled tax breaks for foreign companies that choose to reinvest profits locally in a push to boost investor confidence and signal a more open economy amidst trade tensions with the European Union and the United States, SCMP reports.
Under the measures rolled out jointly by the country's Ministry of Commerce, the Ministry of Finance and the State Taxation Administration, “foreign companies that choose to reinvest profits earned in China back into local operations will be able to deduct their onshore tax by an amount equivalent to 10% of the reinvested sum.