28 Sept 2018
Remittance of Profits
China allows FIEs and enterprises issuing shares offshore to remit their profits, dividends and bonuses out of the country. Such remittances do not require the prior approval of foreign exchange authorities, but can be processed directly at the opening bank by presenting the necessary documents.
When the bank handles remittances of profits of an amount at or under the equivalent of US$50,000 for a domestic entity, verification of transaction documents is, in principle, no longer required. In handling remittances of profits of an amount exceeding the equivalent of US$50,000, the resolution of the board of directors on profit distribution (or resolution of partners on profit distribution) related to the current remittance of profits and the original tax filing form should be verified based on the principle of genuine transaction. After each case of profit remittance, the bank should endorse and stamp on the original copy of tax filing form the amount of profit actually remitted and the date of remittance.