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The Settlement of Enterprise Profits

* The legitimate profits, other legitimate income and fund gained through settlement by foreign investors in their operation of the enterprises can be freely remitted outside China after being legally levied on income tax.

* The profits gained by foreign investors from their enterprises are exempted from income tax of remitted profits when remitted directly outside China.

* The foreign investors may reinvest their profits in the enterprises or in other business undertakings. If the investors reinvest their profits for no less than 5 years in succession in China, 40% of income tax on these reinvested profits will be refunded to the investors. If they reinvest in expansion or establish export-oriented or technologically advanced enterprises. income tax on these reinvested profits will all be refunded to the investors .



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