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Encouraging Foreign Investors to Expand Investment with Profits: The Ministry of Commerce Clarifies Implementation Path

Source：Haibao News 07-24-2025 09:00:00

Recently, the Ministry of Commerce's website released the General Office of the Ministry of Commerce's Notice on Implementing the Tax Credit Policy for Direct Investment by Foreign Investors Using Distributed Profits.

The notice emphasizes that local commerce authorities should fully recognize the importance of using tax incentives to encourage foreign investors to expand their investments in China with profits. This approach is significant for stabilizing investment expectations and reducing investment costs. Authorities are urged to deeply understand the policy's intent, accurately grasp the policy requirements, and ensure proper implementation.

Regarding the establishment of a sound working mechanism, provincial commerce authorities should collaborate with relevant departments such as finance, taxation, and foreign exchange to create a cross-departmental coordinated management service mechanism for tax credits on direct investments by foreign investors using distributed profits. They should also formulate specific workflows and enhance collaboration with market regulation departments to effectively fulfill the responsibilities of qualification review and supervision.