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1. Foreign investors can use the profits distributed by resident enterprises in China for direct investment in China to offset domestic income.
If foreign investors use the profits distributed by resident enterprises in China for direct investment in China between January 1, 2025 and December 31, 2028 and meet the conditions, they can offset the tax payable of the foreign investors in that year at 10% of the investment amount. Any unused offset may be carried forward to future years. If the applicable tax rate for equity investment income, such as dividends and bonuses, in the tax treaty concluded between the Government of the People's Republic of China and foreign governments is lower than 10%, the agreed tax rate shall be implemented.
2. Further optimize the departure tax refund policy and expand inbound consumption
Foreign travelers who purchase tax-refundable items on the same day at the same store for an amount of RMB 200 and meet other relevant regulations can apply for a departure tax refund. The cash tax refund limit is raised to RMB 20,000. The policy promotes stronger cooperation between tax refund agencies and payment institutions, clearing institutions, etc. Further, under the premise of controllable risks, tax refund services are provided through mobile payment, bank cards, cash, and other methods to better meet the diversified payment service needs of overseas travelers.
Reference/Citation
1. Announcement on Tax Credit Policy for Foreign Investors Investing Directly with Dividend Profits (Announcement No. 2 of 2025 by the Ministry of Finance, State Administration of Taxation, and Ministry of Commerce)
2. Notice of the Ministry of Commerce and Six Other Departments on Further Optimizing the Departure Tax Refund Policy and Expanding Inbound Consumption (Commerce Consumption Development (2025) No. 84)
1、《关于境外投资者以分配利润直接投资税收抵免政策的公告》（财政部 税务总局 商务部公告2025年第2号 ）
2、《商务部等6部门关于进一步优化离境退税政策扩大入境消费的通知》(商消费发〔2025〕84号)
