Please note that some of the content of this guideline is now outdated. We invite you to send us your questions about repatriation and reinvestment of assets in China to receive free information and advice: Ask the Expert >
You will also find information on our page dedicated to Financing and Taxation in China.
This report provides a general summary of the operating and financing life cycle of a Chinese subsidiary set up by a European Union (EU) small or medium-sized enterprise (SME). It considers, from the tax and regulatory perspectives, (i) how to finance/capitalise a foreign invested enterprise (FIE), (ii) how to extract profits or reinvest them, and (iii) the implications of winding down and liquidating operations. Details of the relevant laws and regulations are supplemented by observations on how FIEs of EU SMEs typically finance themselves and incur operational expenses in practice.
