China's State Administration of Taxation has published Announcement No. 2 of 2025 of 27 June 2025, jointly issued with the Ministry of Finance and the Ministry of Commerce. The Announcement introduces a new corporate income tax credit for foreign investors that reinvest profit distributions (dividends) received from Chinese companies, which applies retroactively from 1 January 2025 to 31 December 2028. The credit is equal to 10% of the reinvestment amount and may be used to offset the tax pa…