The Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the Ministry of Commerce recently issued the Circular about Expanding the Scope of Application on the Policy of Not Collecting Withholding Income Tax on Direct Investments with Distributed Profits by Overseas Investors.
According to the circular, the favorable tax policy will be expanded to all non-restricted foreign investment projects and sectors from encouraged foreign investment projects.
Moreover, if overseas investors have not enjoyed any policy benefits, they can apply to receive tax benefits within three years and get tax breaks from tax payments they have already made.
The policy has been implemented since January 1, 2018.