China's State Administration of Taxation has published Circular 88 of 21 December 2017 concerning the temporary withholding tax exemption for reinvested dividend and profit distributions announced earlier in the year. The circular provides that such distributions made by resident enterprises to foreign investors are exempt from withholding tax effective retroactively from 1 January 2017, provided that:
- The distributions are actually recognized and directly reinvested to increase the capital…