China gives tax incentives to foreign companies that reinvest in the country

Beijing, Dec. 29 (.) .- China has launched a program of tax benefits for foreign companies that reinvest their profits in the country, according to an announcement made last night simultaneously by several ministries.

Foreign firms will be exempt from paying the interim withholding 10% tax on their profits if they invest in 348 specific sectors of the economy.

The exemption applies retroactively to January 1 2017, which means that taxes paid this year will be returned if there has been a corresponding investment.

This measure is in line with other similar approved by other countries to promote investment, especially in key sectors considered by each government.

Analysts quoted by Caixin economic entryway consider that the measure is a response to the Beijing government monetary reform recently passed by the US Congress, which includes provisions for an investment to attract the country.

Outside direct investment in China increased by 9.8% during the first eleven months of the year to reach 803,620 million yuan (103,000 million euros, 123,600 million dollars), according to official Chinese data.