China widens income tax exemption for foreign investors

[To-Whose-Benefit?]

Reuters
September 30, 2018 / 7:01 AM / Updated 9 hours ago

[excerpt]

https://www.reuters.com/article/us-china-economy-investment-tax/china-widens-income-tax-exemption-for-foreign-investors-idUSKCN1MA0DI

BEIJING (Reuters) - China has widened income tax exemption on re-invested profits for foreign firms, the finance ministry said on Sunday, to try to boost foreign investment amid trade tensions.

The ministry said last December it would temporarily exempt foreign firms from paying provisional income tax on profits they re-invest in the country. But such policies only covered investment into sectors encouraged by the Chinese government.

The scope of the tax exemption has been expanded to all sectors where foreign investment is not prohibited, the finance ministry said in a statement.