China rolls out 10 percent tax credit for foreign investors reinvesting dividends

On June 30, the finance, taxation, and commerce authorities announced a tax incentive for foreign investors. The measure allows a 10 percent corporate income tax credit on direct domestic investments funded by dividends from Chinese resident companies. Eligible investors can reinvest dividends in various sectors, including those listed in the Catalogue of Encouraged Industries for Foreign Investment, with applications allowed retroactively for qualifying reinvestments made between January 1, 2025.