MOFCOM Stresses Implementation of the Tax Credit Policy for Foreign Investors Making Direct Investment with Distributed Profits

The Ministry of Commerce (MOFCOM) has released the Circular on Effectively Implementing the Tax Credit Policy for Foreign Investors Making Direct Investment with Distributed Profits (the "Circular").

The Circular specifies that, after a foreign investor submits its information and certificates via the invested enterprise through the MOFCOM's unified online service system platform as required in Article 6 of the Announcement on the Tax Credit Policy for Foreign Investors Making Direct Investment with Distributed Profits (the "Announcement"), the commerce authority at the location of the invested enterprise shall verify the submitted information and certificates by relying on the foreign investment information report and pursuant to the statistical requirements for "profit reinvestment"; if verified to be true, the information and certificates shall be submitted to the provincial commerce authority via the system. If the provincial commerce authority, in consultation with relevant departments, confirms that the conditions specified in Article 2 of the Announcement are met upon review, it shall issue a Profit Reinvestment Information Form to the invested enterprise. After a foreign investor eligible for the tax credit policy recovers their investment and submits information as required in Article 6 of the Announcement, the commerce authority at the location of the invested enterprise shall conduct verification by relying on the foreign investment information report and other materials and submit the information to the provincial commerce authority for confirmation.



(Source: https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_b0b9f341f22c41bdbcd9820a7e98b205.html)

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