国家税务总局关于外国投资者享受再投资退还所得税优惠有关问题的

颁布日期：20000314 　实施日期：20000314 　颁布单位：国家税务总局

GuoShuiFa [2000] No.49

March 14,2000

The State taxation bureaus of all provinces, autonomous regions, municipalitie directly under the Central Government and municipalities separately listed on the state plan and Shenzhen local taxation bureau:

Recently, localities have repeatedly asked under what conditions enterprises which are partly or wholly foreign-owned, are established within China, and are specifically engaged in investment business should be required to return the tax rebate they acquired for reinvestment according to Article 10 in Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprise. Specifically, questions have been raised about reorganizations between such enterprises and other parts of a corporation which occur less than 5 years after they received a tax refund for reinvestments in accordance with relevant regulations. After consideration we now clarify the issue as follows:

It can be deemed that a foreign investor who has received a tax refund for reinvestment did not withdraw those investments if, during the reorganization of the operations of a corporate group (including enterprises with foreign investment in which a foreign investor holds 100% of the shares and is specifically engaged in investment business), s/he assigns the reinvestment to a corporation in which s/he directly or indirectly holds, or with which someone commonly holds, 100% shares. The tax rebate received by the foreign investor thus need not be recovered. With the exception of this circumstance, the reinvestment withdrawn by a foreign investor through such actions including the reassignment of shares shall be handled according to Art.1 in Reply of State Administration of Taxation Concerning Matters of Tax Refunds for Foreign Investor Reinvestment in Shanghai Natiefu Transmission Shaft Lt. Co. (GuoShuiHan [1999] No.31).