When is profit allowed to be repatriated in China?

Profit is allowed to be repatriated in China if an entity complies with all of the following points:

• The wholly foreign-owned enterprise’s (WFOE) registered capital has been injected within the time limits as set out in the Article of Association;
• The WFOE’s loss in the prior year has been fully made up;
• The WFOE has drawn 10 percent of the remaining after-tax profits as the company’s statutory common reserve;
• The WFOE’s relevant taxes have been fully paid up;
• The WFOE has sufficient cash for dividend distribution;
• The WFOE’s board of directors approved the distribution through a board resolution.