The most common way to repatriate profits from China to abroad, as in the case of a China-based subsidiary to its parent company in Europe, is to pay dividends. However, dividends (as well as interests and royalties) are subject to a 10% Withholding Tax; in addition, dividends can only be repatriated on the accumulated profits of the China-based subsidiary, and only for profit that has been audited in that year.

The 10% Withholding Tax may be reduced under tax treaties signed by China and the country of residence of the company receiving the dividends. For instance, when the overseas shareholder is a company which at least directly owns 25% of the capital of the foreign investment enterprise, the withholding tax rate is reduced to 5%.