- China operates a two-track tax incentive for foreign investors that recycle China profits into onshore direct investment: a deferral (no withholding tax until exit) and a 2025–2028 tax credit of up to 10% of the reinvested amount.
中国对外国投资者将中国利润再投入境内直接投资实行双轨税收优惠：递延纳税（退出前不征预提所得税）与2025—2028年按再投资额最高10%的税收抵免。- The deferral policy (Cai Shui [2018] No. 102) applies to profits distributed by a resident enterprise that are directly reinvested into any non-prohibited project or sector — not only encouraged categories.
递延纳税政策（财税〔2018〕102号）适用于居民企业分配的利润直接再投资于所有非禁止外商投资的项目与领域，而不仅限于鼓励类。- The credit policy (MOF/STA/MOFCOM Announcement No. 2 of 2025) grants a 10% credit against the investor’s current-year liability for qualifying reinvestments made between 1 January 2025 and 31 December 2028, with carry-forward of any unused amount.
抵免政策（财政部、税务总局、商务部公告2025年第2号）对2025年1月1日至2028年12月31日期间的合格再投资，按投资额10%抵免当年应纳税额，未抵免部分可结转。- Both tracks require the reinvestment to be held continuously for at least five years (60 months), with funds moving directly between the distributing and investee accounts without intermediate parking.
两条轨道均要求再投资连续持有至少五年（60个月），且款项直接在利润分配企业与被投资企业（或股权受让方）账户间转移，不得在中间账户周转。- Where a tax treaty sets a dividend rate below 10%, that lower rate applies; for the credit, the investor may elect the 10% or the treaty rate in computing the credit base.
税收协定股息税率低于10%的，按协定税率执行；就抵免而言，投资者可在计算抵免额度时选择10%或适用的协定更低比例。- The incentives sit alongside the 2026 Action Plan’s push to facilitate onshore reinvestment, making profit reinvestment one of the most concrete “retain and upgrade” levers for FIEs.
这些激励与2026年行动方案”促进外资境内再投资”的导向相叠加，使利润再投资成为FIE”留得住、发展好”最具体的杠杆之一。
Tax Incentives for Foreign Investors’ Onshore Reinvestment in China (2026) | 外资企业境内再投资税收激励（2026）：递延纳税与税收抵免双轨
Why this matters now
For a foreign parent deciding what to do with profits earned by its China subsidiary, the default instinct is often to repatriate. China’s tax framework now gives a reasoned alternative: keep the capital in China and reinvest it, and the tax code rewards you for doing so. Two instruments stack: a long-standing deferral of the 10% withholding tax on repatriated profits, and a newer tax credit introduced for the 2025–2028 window. Together they lower the effective cost of growing in China and align with the 2026 *Action Plan for Stabilising and Optimising Foreign Investment*, which explicitly facilitates onshore reinvestment.
This article explains both tracks, their conditions and mechanics, how tax treaties interact, and the practical steps an FIE should take. It complements our pieces on corporate income tax, tax-residency and cross-border finance.
Track one — the deferral policy (Cai Shui [2018] No. 102)
Since 1 January 2018, where a foreign investor takes profits distributed by a Chinese resident enterprise and directly reinvests them into any non-prohibited project or sector, the profit is subject to deferred withholding-tax treatment — the 10% withholding tax (or the applicable treaty rate) is not collected until the investor recovers the investment. This was a major expansion from the original policy, which limited deferral to encouraged-category projects.
The deferral is not an exemption; it is a timing benefit. The tax is due when the investor withdraws or recovers the reinvested profit. Key conditions: the reinvestment must be a direct equity investment (capital increase, new establishment, equity acquisition), the invested enterprise must operate in a non-prohibited sector, and the funds must flow directly from the distributing enterprise’s account to the investee (or transferor) account.
Track two — the 2025–2028 tax credit (Announcement No. 2 of 2025)
To further encourage “patient capital,” the Ministry of Finance, the State Taxation Administration and MOFCOM issued Announcement No. 2 of 2025. For profits distributed by a Chinese resident enterprise and used for qualifying onshore direct investment between 1 January 2025 and 31 December 2028, the foreign investor may credit 10% of the reinvested amount against its current-year corporate-income-tax liability; any shortfall carries forward to later years.
The credit and the deferral are complementary: the deferral postpones the withholding tax, while the credit reduces the investor’s *own* enterprise-income-tax bill on the reinvested profit. Where a tax treaty sets a dividend rate below 10%, that lower rate applies to the underlying distribution. For computing the credit base, the investor may elect the 10% rate or the applicable treaty’s lower dividend rate — a choice made once, locked at recovery.
Conditions and mechanics
Both tracks share core mechanics:
- Continuous holding: the reinvestment must be held continuously for at least five years (60 months). Early withdrawal generally triggers recapture.
- Direct passage of funds: cash payments move directly from the distributing enterprise’s account to the investee/transferor account; non-cash payments (goods, securities) transfer ownership directly, without intermediate holding.
- Sector test: the investee must operate in a sector listed in the *Catalogue of Industries for Encouraging Foreign Investment* (for the credit) or, at minimum, a non-prohibited sector (for the deferral).
- Exclusions: additions to, or acquisitions of, listed-company shares are generally excluded (except qualifying strategic investments); the credit does not apply to routine dividend repatriation without reinvestment.
Administratively, the investor files with the in-charge tax authority, and the investee enterprise assists with verification. The STA’s Announcement No. 18 of 2025 details the filing and recordation mechanics.
Interaction with tax treaties
China’s network of tax treaties routinely sets dividend withholding rates below the statutory 10% (commonly 5% or 0% for qualifying substantial shareholdings). Two consequences follow. First, the deferral’s eventual withholding tax is computed at the treaty rate, not 10%, where the treaty applies. Second, for the credit, the investor may elect the 10% or the treaty rate in determining the credit base — a planning choice that should be made with the recovery scenario in mind, because the election is locked when the investment is recovered.
Practical steps for FIEs
- Model repatriate vs. reinvest on an after-tax basis, including the deferral’s time value and the credit’s upfront reduction.
- Confirm sector eligibility of the investee against the Encouraged Catalogue (for the credit) or the non-prohibited test (for the deferral).
- Lock the fund path so distributions move directly to the investee account — no intermediate parking that would break the condition.
- Plan the five-year hold and avoid structures that anticipate early withdrawal.
- Elect the credit base deliberately (10% vs treaty rate) with the exit in view.
- Coordinate with the 2026 Action Plan’s reinvestment-facilitation measures and the major-project service stream for large reinvestments.
Related reading
- Corporate income tax overview for foreign-invested enterprises.
- Tax residency, the six-year rule and treaty relief.
- Cross-border capital pools and foreign-exchange registration for FIEs.
外资企业境内再投资税收激励（2026）：递延纳税与税收抵免双轨
为何重要
当外国母公司决定如何处理中国子公司赚取的利润时，本能反应往往是汇回。中国的税收框架如今提供了一个理性的替代方案：将资本留在中国并再投资，税法会为此给予奖励。两项工具可叠加：长期适用的利润再投资递延10%预提所得税，以及2025—2028窗口期新引入的税收抵免。二者共同降低了在华扩张的有效成本，并与2026年《利用外资固稳促优行动方案》”促进外资境内再投资”的导向一致。
本文阐释两条轨道、各自的条件与机制、与税收协定的互动，以及外商投资企业应采取的实务步骤。它与本站点关于企业所得税、税收居民身份与跨境资金的文章相互补充。
轨道一——递延纳税（财税〔2018〕102号）
自2018年1月1日起，外国投资者从中国居民企业分配的利润直接再投资于所有非禁止外商投资的项目与领域的，实行递延纳税——10%的预提所得税（或适用的协定税率）在投资者收回投资前暂不征收。这相较原政策（仅限鼓励类项目）是重大扩围。
递延并非豁免，而是时间性优惠。税款在投资者撤回或收回再投资利润时缴纳。关键条件：再投资须为直接权益性投资（增资、新建、股权收购），被投资企业须经营非禁止行业，且款项须直接从利润分配企业账户转入被投资企业（或受让方）账户。
轨道二——2025—2028税收抵免（2025年第2号公告）
为鼓励”耐心资本”，财政部、税务总局、商务部发布2025年第2号公告。对居民企业分配的利润，在2025年1月1日至2028年12月31日期间用于境内直接投资且符合条件的，外国投资者可按投资额的10%抵免当年应纳税额，当年不足抵免的可向以后年度结转。
抵免与递延相互补充：递延推迟预提税，而抵免减少投资者就该再投资利润自身的企业所得税负担。税收协定股息税率低于10%的，就底层分配按协定税率执行。就抵免额度计算，投资者可选择10%或适用的协定更低比例——该选择一次性作出，并在收回投资时锁定。
条件与机制
两条轨道共享核心机制：
- 连续持有： 再投资须连续持有至少五年（60个月），提前撤回通常触发补税。
- 资金直转： 现金支付直接从利润分配企业账户转入被投资企业/受让方账户；非现金支付（实物、有价证券）所有权直接转移，不得由其他企业或个人中间持有。
- 行业测试： 被投资企业须经营《鼓励外商投资产业目录》所列行业（抵免）或至少为非禁止行业（递延）。
- 排除项： 新增、转增、收购上市公司股份一般排除（合格战略投资除外）；无再投资的常规股息汇回不适用抵免。
在操作上，投资者向主管税务机关申报，被投资企业协助核实。税务总局2025年第18号公告细化了申报与备案机制。
与税收协定的互动
中国的税收协定网络通常将股息预提税率设定在法定10%以下（合格大额持股常为5%或0%）。由此产生两点后果：其一，递延最终适用的预提税按协定税率（而非10%）计算；其二，就抵免而言，投资者可在10%与协定更低比例间选择抵免基数——这是一项应结合收回情景规划的安排，因为选择会在收回投资时锁定。
外商投资企业的实务步骤
- 在税后基础上建模“汇回 vs 再投资”，纳入递延的时间价值与抵免的即期减让。
- 确认被投资企业行业资格——对照《鼓励目录》（抵免）或非禁止测试（递延）。
- 锁定资金路径，使分配直接转入被投资企业账户——不得中间周转，以免破坏条件。
- 规划五年持有期，避免预设提前撤回的结构。
- 审慎选择抵免基数（10% vs 协定税率），着眼退出时点。
- 与2026年行动方案再投资便利化举措及重大外资项目服务专班协同，用于大型再投资。
延伸阅读
- 外商投资企业的企业所得税概览。
- 税收居民身份、六年规则与协定救济。
- 外商投资企业的跨境资金池与外汇登记。
Sources
- 国家税务总局：《外商投资项目全周期涉税服务指引（对外资）》（涵盖财税〔2018〕102号、国家税务总局公告2018年第53号、财政部 税务总局 商务部公告2025年第2号、国家税务总局公告2025年第18号）— https://www.chinatax.gov.cn/chinatax/n810219/n810744/n1671176/n2884609/c5245410/5245410/files/2025-12-2%20%E5%A4%96%E5%95%86%E6%8A%95%E8%B5%84%E9%A1%B9%E7%9B%AE%E5%85%A8%E5%91%A8%E6%9C%9F%E6%B6%89%E7%A8%8E%E6%9C%8D%E5%8A%A1%E6%8C%87%E5%BC%95%EF%BC%88%E5%AF%B9%E5%A4%96%EF%BC%89.pdf
- 商务部、国家发展改革委、财政部：《利用外资固稳促优行动方案》（商资发〔2026〕97号，促进外资境内再投资）— https://fdi.mofcom.gov.cn/questionDetial.html?id=48925