Ministry of Commerce: Stabilize investment expectations Encourage and support overseas investors to expand investments in China.

On July 16th, the Office of the Ministry of Commerce issued a notice on the implementation of tax exemption policies for foreign investors directly investing profits. It was proposed that local commerce authorities should strengthen coordination with relevant departments, exert regulatory synergy, track and manage foreign investors enjoying tax exemptions and their corresponding investments in accordance with the law; establish work ledgers, regularly understand the operating conditions of invested enterprises through information sharing, on-site visits, etc. For foreign investors who withdraw investments, understand the reasons and urge them to submit relevant information as required; promptly report to the tax authorities and cooperate in recovering taxes for cases where non-compliance with the prescribed conditions is discovered in subsequent management; and timely report to the foreign exchange, tax and other departments for legal disposal in case of possible violations of foreign exchange management and tax collection regulations by related foreign investment enterprises. Provincial commerce authorities should closely monitor the implementation of tax exemption policies along with relevant departments, fully leverage policy dividends, stabilize investment expectations, encourage and support foreign investors to expand their investments in China. Through mechanisms such as provincial and relevant city-level foreign investment task forces, roundtable meetings for foreign-invested enterprises, listen to the opinions and suggestions of foreign-invested enterprises and foreign investors on policy implementation and related work, and promote the resolution of difficulties encountered in enjoying policies through cross-departmental collaborative management service mechanisms; promptly summarize the implementation effects of policies, analyze investment trends and directions. The original text is as follows: Notice on the Implementation of Tax Exemption Policies for Foreign Investors Investing Profits Directly Issuing UnitForeign Investment Bureau Issuing Document NumberShang Ban Zi Han [2025] No. 380 Date of IssueJuly 14, 2025 Provincial, autonomous regions, municipalities directly under the central government, planned single cities, and the Economic Cooperation Bureau of the Xinjiang Production and Construction Corps, Ministry of Commerce: In order to implement the decisions and arrangements of the CPC Central Committee and the State Council, encourage foreign investors to increase their investment in China, promote the formation of more effective investments, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Commerce submitted to the State Council for approval and issuance of the "Announcement on the Tax Exemption Policy for Foreign Investors Investing Profits Directly" (hereinafter referred to as the "Announcement"). Provincial commerce authorities should fully understand that tax incentives play an important role in encouraging foreign investors to expand their investment in China, stabilize investment expectations, and reduce investment costs under the current situation, deeply understand the spirit of the policy, accurately grasp the policy requirements, and ensure the implementation of the policy. With reference to the work of the Ministry of Finance, the State Administration of Taxation, the State Administration for Market Regulation, and the State Administration of Foreign Exchange, the relevant work is now notified as follows: 1. Establish a sound work mechanism Provincial commerce authorities should establish a cross-departmental collaborative management service mechanism for tax exemption for foreign investors' direct investment profits (referred to as tax exemption) with the same-level finance, taxation, foreign exchange and other relevant departments (referred to as relevant departments) , develop specific work processes, strengthen coordination with market supervision and other departments, effectively perform qualification examination and supervision responsibilities, and share information in accordance with the requirements of Article 6 of the "Announcement". 2. Strictly fulfill audit responsibilities Foreign investors, in accordance with the requirements of Article 6 of the "Announcement," should submit information and vouchers through the unified platform of the business system of the Ministry of Commerce (the "Profit Reinvestment Tax Exemption Declaration" module for foreign investment comprehensive management application) after being invested by the foreign investment. The commerce authorities of the place where the enterprise is located should rely on foreign investment information reporting, refer to the statistical requirements of "profit reinvestment" to compare and verify the information and vouchers submitted by the enterprise, and submit to the provincial commerce authorities through the system after verification is correct. Provincial commerce authorities, together with relevant departments, after confirming the conditions in accordance with Article 2 of the "Announcement," issue the "Profit Reinvestment Situation Form" to the invested enterprise. Foreign investors who enjoy tax exemptions withdraw their investments, and after submitting information in accordance with the requirements of Article 6 of the "Announcement," the commerce authorities of the place where the invested enterprise is located should compare and verify it through foreign investment information reporting, and submit it to the provincial commerce authorities for confirmation. 3. Provide policy consultation services Provincial commerce authorities should, based on local conditions, establish policy consultation windows through various channels such as consultation telephone, government mailbox, government WeChat official account, and designate specific personnel to answer questions encountered during the declaration process. The policy consultation acceptance contact form should be submitted to the Ministry of Commerce (Foreign Investment Bureau) before July 25, and it will be announced through the unified platform of the business system of the Ministry of Commerce in the future. 4. Strengthen cooperation and supervision Local commerce authorities should strengthen coordination with relevant departments, exert regulatory synergy, track and manage foreign investors enjoying tax exemptions and their corresponding investments according to the law; establish work ledgers, regularly understand the operating conditions of invested enterprises through information sharing, on-site visits, etc. For foreign investors who withdraw investments, understand the reasons and urge them to submit relevant information as required; if conditions that do not comply with the regulations are found in subsequent management, promptly report the situation to the tax authorities and cooperate in recovering taxes; if possible violations of foreign exchange management and tax collection regulations by related foreign investment enterprises are discovered, promptly report to the foreign exchange, tax, and other departments for legal disposal. 5. Timely track the effectiveness of policies Provincial commerce authorities should closely monitor the implementation of tax exemption policies with relevant departments, fully leverage policy dividends, stabilize investment expectations, encourage and support foreign investors to expand their investments in China; rely on mechanisms such as provincial and relevant city-level foreign investment task forces, roundtable meetings for foreign-invested enterprises, listen to the opinions and suggestions of foreign-invested enterprises and foreign investors on policy implementation and related work, and promote the resolution of difficulties encountered in enjoying policies through cross-departmental collaborative management service mechanisms; promptly summarize the implementation effects of policies, analyze investment trends and directions. Provincial commerce authorities should promptly report to the Ministry of Commerce (Foreign Investment Bureau) in case of major issues encountered during the policy implementation process. Office of the Ministry of Commerce July 14, 2025 This article is compiled from the official website of the Ministry of Commerce, edited by GMTEight: Li Fo.