OFFICIAL REPLY OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING REINVESTMENT IN CHINA WITH DISTRIBUTED PROFIT OF PARTIES OF THE JOINT VENTURE, WHICH HAS BEEN REMITTED ABROAD, CANNOT ENJOY TAX REBATE AS REINVESTMENT

The Ministry of Finance, the State Administration of Taxation

Official Reply of the Ministry of Finance and the State Administration of Taxation Concerning Reinvestment in China with Distributed
Profit of Parties of the Joint Venture, which has been Remitted Abroad, Cannot Enjoy Tax Rebate as Reinvestment

CaiShuiWaiZi [1981] No.82

September 16, 1981

Tianjin Tax Bureau:

The report CaiShui [1981] No.305 was received. Reinvestment with distributed profits of a party to Chinese-foreign equity joint ventures,
which has been remitted abroad and deposited into foreign banks or turn over as trade fund cannot be handled according to regulations
on tax rebate for reinvestment.