Profit repatriation is a delicate subject under China’s foreign direct investment regime. Various regulatory, formality and tax factors surrounding the issue make it worthwhile for investors to define carefully their repatriation strategies, so as to entail tax and profit outcome to the extend that they should be legally entitled to. These strategies may not necessarily be complex or costly, while their effects could be very substantial: in certain cases meaning a tax saving of up to 20% of the turnover. This issue of CHINAjournal is intended to shed some lights on the commonly used strategies that may help to optimise profit repatriation out of China.

 

Chinajournal_sep.2005_profit_repatriation_strategy

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