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China will temporarily exempt foreign companies from taxes

China's ministry of finance reported that it would temporarily exempt foreign companies from income tax, however, with one condition.

Currently foreign companies in China, which is among the countries with high taxes, have to pay a 25-percent profit tax, and to it in addition several deductions, including to the social insurance fund.

Now companies will be able to save these funds if they directly invest in the spheres of economy designated by the Chinese government - agriculture, mining, alternative energy, technology and railways - and reinvest the profits there.

The tax rebate is adopted retroactively - from January 1, 2017, that is, taxes paid by companies this year, will already be returned to them.

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