Foreign enterprises often use the way of profit remits to transfer capital to the overseas headquarter. But profit can normally be remitted only after the settlement of the reconciliation and audit, besides it is often one time a year.

If the capital is transferred by the method of simple goods trade to overseas, physical imports of goods are required to be used to make foreign payments. Exactly, this way is not suitable for a few foreign enterprises.

In addition, foreign enterprises can also transfer capital to the overseas through non-trade payments. Such as trademark royalties, royalties, management fee etc.. However, due to China tax administration is strict to the check of non-trade payments, many non-trade payments application of foreign enterprises cannot gain the approvals.

Dongjin has been familiar with the relevant regulations and laws about the non-trade payments, and has mastered key points when taxation administration checks them. Dongjin has also accumulated more than 20 years of practical experience in drafting non-trade payment agreements and applying to the taxation administration. At the same time, Dongjin has established a long-term partnership with many banks, so this can help foreign enterprises gain the approvals of payments to the utmost as well as accelerate the transfer of capital.

If enterprises want to consult about any relevant problems, please connect with Dongjin at all times.

Mike Chang

Partner

mikechang@shanghaiinvest.com