China's State Administration of Taxation has issued Notice No. 3 of 2018 and the related interpretation guidance concerning the temporary withholding tax exemption for reinvested dividend and profit distributions introduced by Circular 88/2017 ({News-2018-01-03/A/5-previous coverage}). Key points are summarized as follows:
- Aside from the requirement that the reinvestment is in encouraged industries, the enterprise in which the investment is made must engage in at least one of the following…