Navigating Profit Repatriation in China's Foreign Exchange Environment

China's stringent foreign exchange controls tightly govern the movement of funds in and out of the country, creating substantial obstacles for foreign businesses aiming to repatriate profits from their subsidiaries. These controls are reinforced by additional regulations including tax laws, the Company Law, and transfer pricing rules, further complicating the repatriation process.

Given these complexities, international investors must acquaint themselves with these regulations and devise customized strategies that align with their business frameworks. This approach enhances the probability of successful profit repatriation while managing associated risks effectively.

In an upcoming webinar Hannah Feng, Partner, International Tax, Corporate Accounting Services, and Bruno Hernandez, Senior Associate, International Business Advisory at Dezan Shira & Associations, will offer insights into China's foreign exchange control system and its implications for foreign investors. The discussion will encompass the regulatory landscape governing profit repatriation for foreign-funded enterprises.

Key takeaways:

• China’s foreign exchange control system
• The impact of foreign exchange control on foreign investors, i.e. following cash in China
• Taxation and double-taxation agreements
• Profit repatriation methods for foreign-funded entities: dividends, service fees, and royalties
• Regulations, instructions, and limitations

This webinar is FREE of charge.

For any questions or concerns, please contact Freda CHEN, at freda.chen@dezshira.com. We look forward to having you join us in this webinar, and answering any questions you might have on the subject.

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This Event occurred on Thursday, August 22, 2024. If you were unable to attend it, you can still benefit from these resources that will help you review or discover more: