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Becky Lai on Muck Rack

Becky Lai

As seen in: Mondaq
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With PN2, China's New Tax Credit For Foreign Reinvestment Offers An Opportunity For Multinational Companies To Recycle Cash For Expansion In China

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By Yvette Chan, Shirley Yong, Aska Li, Becky Lai
| Mondaq
China announced a new incentive regime aimed at encouraging foreign investors to reinvest profits onshore. The policy would offer cash flow benefits where the prerequisite conditions are satisfied. In June 2025, China's Ministry of Finance, State Taxation Administration (STA), and Ministry of Commerce jointly issued Public Notice No. 2 [2025] (PN2)1 to enhance the country's dividend withholding tax (WHT) deferral regime by introducing a new tax credit mechanism.
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