Repatriation of Earnings from China

Introduction of Income Repatriation

Non-Trading Transactions

Non-trading transactions, including consulting services, training services, etc., between related parties and payments in excess of $50,000.

Trading Transactions

Transfer of foreign equity, interest payments, dividends, income repatriation and other capital items needed for overseas payments.

Income Repatriation Procedures

We provide services for enterprises who are unfamiliar with income repatriation processes and policies.

Our Focus

Tax Costs

Treatment of repatriation of earnings for different projects, withholding and payment of the appropriate taxes, and tax treaties can directly affect the success of payments. In addition, RTF can determine the type and amount of withholding taxes to be accounted based on the overseas business, and also help to analyze and bear the lowest tax burden from the tax bureau.

Reasonable and Transparent Process

The time required to repatriate earnings from China can directly affect the enterprise and its shareholder's cash flow. Most shareholders want to obtain the profits as soon as possible to make up for the limited cash flow; so the ineffective arrangement of audit reports on related profits will cause the repatriation process to badly affect the timing of external payments.

Determination of Permanent Establishment (PE)

Due to the misjudgment of Permanent Establishment (PE) by tax bureaus caused by the vague description of foreign workers' inbound projects in contracts, enterprises have to withhold and remit corporate income tax.

Our Solutions

Preliminary Analysis Services

Classification

Clearly divide different types of payment items in contracts. Distinguish withholding-at-source from non-withholding-at-source projects, which directly affect the tax bureau's judgment on tax costs.

Execution of Control Table

We will create a project schedule that allows convenient and efficient tracking of the project process and milestone achievement. This common resource increases mutual understanding and keeps our clients on the same page as RTF's team members at all times.

Mid-Stage Preparation Services

Fair Pricing

In confirming whether a company belongs to an affiliated company transaction, we focus on fairness in contract pricing, cost apportionments, and other aspects of the affiliated party, and revise the contract to conform to the fairness description of a non-affiliated party, in order to reduce the tax cost during the approval process and the future management.

Audit verification

Repatriating income from China will require a profit audit report.

Preparation of Materials

After the confirmation of the clients， we assist our enterprise clients to prepare the external payment application, complete a series of income repatriation forms for the affiliated party, and prepare other payment materials.

Later Services

Submission of Application

After the relevant information has been prepared, all materials will be classified and collected according to the different repatriation projects and submitted to the administering tax bureau, foreign exchange bureau, business committee, and other departments.

Payment Completion

After obtaining the tax clearance certificates and income repatriation approval, the enterprise may proceed to the bank to process the payment.

Our Service Advantages

Overall Planning

Through efficient and professional planning, we can help foreign investment enterprises to quickly realize their financial and tax optimization objectives at a lower cost, while reducing their potential risk.

Risk Control

We analyze enterprises' current situations and develop the best solution with respect to relevant requirements. We avoid risks in the early compliance procedure so that the application can proceed smoothly.

Post-Service Payment Guarantee

We bill after we have provided our services. We find that this helps to control costs for clients in the earlier stages of projects, and it is our guarantee of service quality to our clients. In this way, our clients are not billed excessive amounts before their problems are completely resolved.

Services

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