Repatriation and Maximization of Profits in China By Jessica Hou and Irene Zhong

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When setting up in China, foreign investors are confronted with a myriad of complex issues, from local regulatory variances, to confusing tax compliance issues and licensing procedures. With all the complexities over submitting business license applications, scant regard is often paid to one of the most important parts of overall business planning, the mechanism to facilitate the effective repatriation and maximization of profits. This is something that should be dealt with during the planning stages of setting up in China.

The following article will present some issues to consider when preparing to repatriate profits out of China, as well as the way withholding and business taxes affect an enterprise in China. Understanding the processes and having proper structures in place from the beginning can vastly improve an enterprises ability to maximize and repatriate profits.

To read the full version of this article, please purchase the July 2009 issue of China Briefing, which can be found in the Asia Briefing Bookstore. Companies requiring assistance may contact any Dezan Shira & Associates' nine national offices at china@dezshira.com for advice or visit www.dezshira.com.

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