Q&A on Asian Bus.

This is the place that our Editors will reply to your various questions about doing business in Asia.
Please utilize it as a solution to the issues you have doing your daily business across Asia.

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Are foreign investors allowed to repatriate profits out of the PRC?

  • FAQ: CHINA
  • Date: 15.07.2010

In 1996, China introduced a system of “current account convertibility” based upon the principle that a foreign investor is entitled to remit out its share of after-tax profits from a Foreign Investment Enterprise (“FIE”). The basic requirements for effecting remittances of dividends and distributions can be found in the  People’s Bank of China, Administration of the Settlement, Sale and Payment of Foreign Exchange Provisions  (the 1996 Forex Regulations).

For more details, see Asia Tax Planning and Compliance [CHN ¶12-150] Profit repatriation