Strategies for Repatriating Profit from China: New Issue of China Briefing Magazine

June 9, 2014 Posted by China Briefing Reading Time: 4 minutes

In this issue of China Briefing Magazine:

How to Remit Service Fees and Royalties
How to Remit Profits as Dividends

The newest issue of China Briefing Magazine, titled “Strategies for Repatriating Profit from China,” is out now and available as a complimentary download in the Asia Briefing Bookstore during the month of June.

When setting up in China, foreign investors are often confronted with complex tax compliance issues and licensing procedures, paying scant regard to one of the most important parts of overall business planning: the effective maximization and subsequent repatriation of profits.

China maintains a strictly regulated system of foreign exchange controls, meaning funds flowing into and out of China are tightly regulated. Therefore, for foreign companies with subsidiaries in China, repatriating cash from their subsidiaries has always been an important and challenging issue. It is important to incorporate a profit repatriation strategy into the set-up planning of a subsidiary in China to ensure one’s ability to access the profits it earned.

In this issue of China Briefing, we guide you through the different channels for repatriating profits, including via intercompany expenses (i.e., charging service fees and royalties to the Chinese subsidiary) and loans. We also cover the requirements and procedures for repatriating dividends, as well as how to take advantage of lowered tax rates under double tax avoidance treaties.

Strategies for Repatriating Profit from China is out now and immediately available as a complimentary PDF download in the Asia Briefing Bookstore for a limited time only.

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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