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Setting Up in Hongqiao
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Shanghai hosts tax credit policy session for foreign investors

LMS
en.shhqcbd.gov.cn| Updated: July 17, 2025

The Shanghai Hongqiao International Central Business District recently hosted a session on new tax credit policies for foreign investors.

Over 80 participants attended — including representatives from more than 60 foreign-funded enterprises and regional commerce committees.

The session focused on a new tax incentive introduced by China's finance, taxation and commerce authorities on June 30.

The policy gives foreign investors a 10 percent corporate income tax credit on direct domestic investments funded by dividends from Chinese resident companies.

Effective from Jan 1, 2025 through Dec 31, 2028, it allows unused credits to be carried forward and applies lower rates under existing tax treaties.

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