Event Recap: Profit Repatriation Strategies and Outbound Payments
On the Tuesday, 19 February, Kristina Koehler-Coluccia, the Head of Business Advisory at Woodburn Accountants & Advisors, hosted a workshop on navigating the complex world of repatriation strategies and outbound payments in China.
Under recent regulations, traditional methods of repatriation are no longer viable. Kristina emphasised it is increasingly important that businesses enter the China market with a strategy for repatriation already established.
Kristina outlined the basic requirements of Enterprise Income Tax (EIT) for Foreign Invested Enterprises (FIEs) dependent on the type of entity: WFOEs, FICEs and Joint ventures.
Kristina outlined the three most effective methods of profit repatriation:
- Dividend Repatriation
With consideration of Business Strategy, tax, outbound payment Processes and bank payment requirements.
- Service Fees
With consideration of Legal/ Business Strategy, tax, outbound payment Processes and bank payment requirements.
- Royalty Fees
With consideration of Legal/ Business Strategy, tax, outbound payment Processes and contract Registration Process.
Kristina's Tips
- Create true, authentic agreements and contracts
- Be smart and choose your battles – whether with the tax bureau, bank or any other government bureau
- Conduct the contract registration as soon as possible with the competent tax authority before the first remittance
- Apply to the tax authority for the tax assessment during the contract registration
- Apply for the treaty benefits where applicable in accordance with the applicable laws.
We'd like to thank Kristina for an extremely thorough, informative and engaging session. Thank you also, to all who attended.
