Swiss China Business Academy (2023-2024): Profit Repatriation

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. This webinar is co-hosted with the Swiss China Business Academy (SCBA).

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

About SCBA

Granted by Leading House Asia, ETH Zurich, as an Innovation Partnership Award, the Swiss China Business Academy (SCBA) is an applied science-oriented program providing a methodology not only for Swiss SMEs to obtain essential knowledge for entry into China but also a solid preliminary base for future localized marketing techniques. Serving as an efficient instrument and a fast lane to enter the Chinese market, it offers a guided journey through which Swiss SMEs benefit from localized marketing techniques and receive coaching to build strategic business relations and ecosystems.

SCBA consists of ten series of themes, which will be held monthly online between September 2023 and August 2024. Throughout the 12-month journey, a small in-house group of participants will be coached and engage in dialogue with our experts and speakers regarding Chinese market entry, investment, and business development.

To register the webinar, please contact Freda CHEN at freda.chen@dezshira.com.