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Expert Analysis

How China's Withholding Tax Relief Affects Foreign Investors

By David Chamberlain (February 13, 2018, 11:21 AM EST) -- The People's Republic of China recently issued a circular allowing foreign investors to withdraw profits from an existing Chinese enterprise and reinvest them in certain encouraged industries without incurring any withholding tax. The policy of encouraging continued foreign investment received the imprimatur of China's top agencies for tax and trade. Caishui [2017] No. 88 ("Circular 88") was jointly issued on Dec. 28, 2017, by China's State Administration of Taxation, the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Commerce....

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