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China’s Optimization of Tax Policies Continues

Daisy Duan, Xiaohong Chen, Cuishi Li of KWM examine a new tax credit policy which is aimed at boosting profit reinvestment by foreign investors

By Daisy Duan and Xiaohong Chen and Cuishi Li
China’s Optimization of Tax Policies Continues

Summary

  • The 2018 policy framework set out a system of withholding taxes deferral for qualified profit reinvestment
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  • A newly-introduced policy allows qualifying foreign investors to claim a credit of 10%

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