On April 4, the Shanghai Municipal People's Government published on its website "Measures to attract and utilize more foreign investment" and "Measures to promote steady scale and quality of foreign trade". Both documents will come into effect on April 6, 2023.
Among them, "Several Measures for Shanghai to Increase the Attraction and Utilization of Foreign Investment" put forward 20 measures, requiring more financial and tax support for the landing of foreign investment projects. The measures will implement the policy of exempting withholding income tax temporarily from foreign investors' direct investment based on profit distribution, optimize the handling process, and make it more convenient for foreign-invested enterprises to enjoy the policy. All districts may, in light of the actual situation and within the scope of their legal authority, reward enterprises with foreign investment, newly invested projects with foreign investment and reinvested projects with profits of enterprises with foreign investment that meet the industrial development orientation of Shanghai Municipality according to their comprehensive contribution to the economy and society of the region.