Are there any tax rebates on re-investment by FIEs available?
Any foreign investor of an FIE re-investing its profit obtained from the enterprise directly into that enterprise, or using the profit as a capital investment to establish other FIEs with an operation period of at least five years is, upon approval granted by the competent tax authorities, eligible for a 40% refund of the corporate tax income already paid on the re-invested amount. If the foreign investor re-invests its profits directly in establishing or expanding an export-oriented or high-tech enterprise in China, the corporate income tax already paid on the re-invested amount will be 100% refunded.
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