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 SAFE. The enterprises, by presenting the necessary documents, can make the remittance direct through the bank, which will report details of the remittance to the local foreign exchange administration.
Documents and Procedures for Remittance of Profits, Dividends and Bonuses
1. Documents to be submitted to bank
Tax payment statement and tax return (enterprises eligible for taxexemption and reduction should also submit proofsissued by local taxoffice); Audited report prepared by accounting firm on profits, dividends andbonuses of the current year; Resolution of the board of directors on dividend and bonus distribution; Foreign exchange registration certificate of foreign-invested enterprise.
2. Bank verifies authenticity of documents
3. Bank completes remittance procedures done, bank will keep photocopies of these two documents for record.
4. Bank reports to local foreign exchange administration dividends and bonuses remitted by FIEs.
