The Tax Rebate for Re-investment Made by Foreign Investor

The State Administrative of Taxation
Guo Sui Han [2005] No. 989
20 October 2005

Tax rebate is allowed to the profit realized from the re-investment made by foreign investor who uses the profit from Foreign Invested Enterprises. However, If a foreign investor re-invests with his profit from an FIE in the form of equity acquisition from other investors of an existing FIE, which does not result in an increase in registered capital or working capital, the re-investment will not be eligible for tax rebate.

關於外國投資者再投資退稅問題

國家稅務總局
國稅函[2005]989號
二○○五年十月二十日

外國投資者計劃用外商投資企業的利潤進行再投資申請批准時，該再投資的利潤已經實現的，在實際再投資時，不論是一次或分期投資，均可以按照規定給予再投資退稅；如承諾用以後年度實現的利潤進行再投資，這種情況應視為補足企業註冊資本，而不屬於"增加註冊資本，或者作?資本投資開辦其他外商投資企業"的範圍，故不得享受再投資退稅的待遇。