Our collection of resources based on what we have learned on the ground

When is profit allowed to be repatriated in China?


Profit is allowed to be repatriated in China if an entity complies with all of the following points:

  • The wholly foreign-owned enterprise’s (WFOE) registered capital has been injected within the time limits as set out in the Article of Association;
  • The WFOE’s loss in the prior year has been fully made up;
  • The WFOE has drawn 10 percent of the remaining after-tax profits as the company’s statutory common reserve;
  • The WFOE’s relevant taxes have been fully paid up;
  • The WFOE has sufficient cash for dividend distribution;
  • The WFOE’s board of directors approved the distribution through a board resolution.

Return to search



Type of resource


Subscribe to receive latest insights directly to your inbox

Subscribe Now