Major Policy Boost for Overseas Investors’ Reinvestment of Profits: 10% Tax Credit + New Deferred Taxation Policy Implemented

Introduction The Ministry of Finance, the State Taxation Administration, and the Ministry of Commerce jointly issued Announcement No. 2 of 2025 and Announcement No. 18 of 2025, introducing a combined tax incentive package—“tax credit + deferred taxation”—for overseas investors reinvesting profits earned within China. This article provides an in-depth analysis of the policy’s key provisions to help enterprises seize the dividend opportunities during the 2025–2028 window period. I. Policy Core: Dual Incentives to Activate Foreign-Invested Reinvestment 1. Tax Credit (Genuine Reduction) ▶️ Rule: From 2025 to 2028, overseas investors who use dividends distributed by Chinese resident enterprises for qualified direct investment within China may offset 10% of their investment amount against their payable tax liability (where applicable tax treaty rates are lower than 10%, the lower rate applies). ▶️ Example: > A German company receives RMB 10 million in profits from Chinese enterprise A. > ➠ It fully invests this amount into establishing a new NEV component manufacturing plant (included in the “Encouraged Catalogue for Foreign Investment”). > ➠ It becomes eligible for a RMB 1 million tax credit. > This credit can be directly applied to offset future Chinese-sourced income taxes on dividends, interest, etc., and any unused balance may be carried forward indefinitely. 2. Deferred Taxation (Temporary Deferral of Original Withholding Tax) ▶️ Groundbreaking Change: For qualifying reinvestment, the 10% withholding income tax on distributed profits is temporarily waived (under prior policy, such tax was withheld immediately upon profit distribution). ▶️ Repayment Rules: II. Five Mandatory Compliance Requirements (All Must Be Met) ✅ Requirement 1: Nature of Profits → Must be dividends or bonus income distributed from retained earnings of a Chinese resident enterprise. → Does not apply to capital reserve conversions or gains from equity transfers. ✅ Requirement 2: Investment Method → Permitted: Capital increases, establishment of new enterprises, acquisition of equity from non-affiliated parties. → Prohibited: Investment in shares of listed companies (except for strategic investments). ✅ Requirement 3: Industry Catalogue → The invested enterprise must fall within the “Encouraged Catalogue for Foreign Investment.” → Note: Enterprises must monitor annual updates to this catalogue. ✅ Requirement 4: Five-Year Lock-up Period → Continuous holding period of 60 months starting from the investment date. → Risk Point: Equity pledges or valuation adjustment mechanisms (e.g., earn-outs) may trigger premature exit. ✅ Requirement 5: Fund Transfer Pathway → Cash Payments: Funds must flow directly from the investor’s profit account to the investee’s account (third-party intermediaries prohibited). → Non-Cash Payments: Direct legal transfer of asset ownership (nominee arrangements prohibited). III. Step-by-Step Practical Guide for Enterprises

Operational Trends and Investment Planning Report for China’s Liquid Biofuel Industry (2015–2025)

[Publication Date] September 2020 [Publisher] Hunan BizResearch Information Consulting Co., Ltd. [Analyst Hotline] 400-166-9286 [Report Download Link] For any customized requirements, please contact our analysts! Market Overview Liquid biofuels serve as energy-efficient alternatives that help mitigate energy security risks and pollution levels associated with fossil fuel combustion. Consequently, they can be extensively blended with conventional fossil fuels for applications such as transportation. This report comprehensively analyzes the current development status of the liquid biofuel industry, integrating both international market dynamics and domestic Chinese conditions. First, it conducts an in-depth examination of the current market landscape across three dimensions—region, type, and application—including market distribution by category and end-use, import/export analysis by major region, development trends of different product types across regions, market opportunities and constraints by application segment, and more. Second, it analyzes the industry’s competitive landscape in detail, incorporating profiles of key market participants, their respective market positions, product strengths and weaknesses, and other relevant factors. Finally, grounded in industry data and supplemented by expert insights and recommendations, the report delivers a thorough analysis and forecast of investment prospects and associated risks. Owing to abundant feedstock resources and arable land suitable for biofuel production, North America has dominated the global market over recent years. Globally, the liquid biofuel market size is projected to grow at a compound annual growth rate (CAGR) of 6.2% from 2020 to 2026. Depleting fossil-fuel-based resources and heightened environmental awareness are key drivers likely to propel market growth. Moreover, various regulatory policies and tax incentives worldwide are expected to compel biofuel manufacturers to increase R&D investment toward commercializing advanced second- and third-generation technologies. Analysis of Industry Leaders Key international market participants covered in this report include Archer Daniels Midland, Renewable Energy Group, Novozymes, Neste Oil, Bunge Limited, Wilmar International Limited, Louis Dreyfus Company, Royal DSM, Green Plains Renewable, and Future Fuel Corporation. Their respective market shares, revenues, corporate profiles, and SWOT analyses are all included in this liquid biofuel market research report. Regional Markets This report elaborates on the development of the liquid biofuel market from multiple perspectives: international market dynamics; domestic policy environments and current market conditions across North China, Central China, South China, East China, Northeast China, Southwest China, and Northwest China; regional industry scale; market development prospects; investment forecasts; competitive landscapes; supply-demand dynamics; existing and potential customers; development trends of different product types; market opportunities and constraints by application segment; and more. The report aims to provide clients with comprehensive market analysis and scientifically grounded forecasts, helping investors and operators gain a thorough understanding of the liquid biofuel market.

FutureFuel sells $3M in 2025 tax credits, commits $19M for 2026

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FutureFuel Corp sold its 2025 Clean Fuel Production tax credits for $3 million to Freepoint Commodities and committed $19 million worth of 2026 credits to the same buyer. This move supports the company's ongoing chemical expansion initiatives.

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FutureFuel Corp. (NYSE: FF) Files Form 8-K Announcing June 2026 Press Release and Company Information