Getting money out · dividends and distributions

Getting profit out of your China entity

A dividend can only be paid out of profit that is actually distributable, and your bank will want that proven before it converts and remits. We prepare the audit position that establishes the distributable amount, and the paper trail your bank will ask for.

  • Distributable profit established properly — statutory reserves and prior-year losses dealt with before we state a figure
  • Bank-ready documentation — prepared to what banks in China actually ask for, not a generic pack
  • Withholding tax position set out — including treaty treatment and what documentation supports it
  • English or bilingual output — so head office can process it without translation

Timing

What has to be true before a dividend can be paid

These are the three conditions that stop most distributions. We check all three before you pass a resolution, not after.

Distributable profit exists

Profit after tax, after transfers to the statutory reserve, and after covering any prior-year losses.

The statutory reserve is funded

The statutory surplus reserve must be appropriated before distribution. Under-funded reserves are a common block.

The audit position is current

Banks ask for audited figures confirming the distributable amount. Draft or management figures are usually rejected.

Scope of services

What the work actually covers

Written out in detail on purpose. If you are comparing firms, this is the list to put side by side with theirs.

Deliverables

What lands on your desk

Distributable profit report

A signed statement of the amount available for distribution and how it was calculated, in English or bilingual.

Statutory reserve schedule

What has been appropriated, what is required, and whether there is a shortfall.

Withholding tax position

A written position on the withholding treatment, including treaty analysis and the documents that support it.

Bank documentation pack

Assembled and ordered for submission, with an English index explaining each document.

Resolution figures

The exact numbers to state in the shareholder or board resolution.

Remittance support

We stay on the engagement through the remittance and answer bank questions as they arise.

Process

From first email to finished work

01  You send the basics

Entity type, what has been requested, and when it is due. One email is enough to start.

02  Scope and fixed fee

We come back within one business day with a written scope, a fixed fee and dates.

03  Documents and fieldwork

One document request list. We work from it, and visit site only where the work genuinely needs it.

04  Delivery and follow-through

Signed output in English or bilingual, plus support through whatever filing follows.

Fees

How we price it

Fixed, in writing, before fieldwork starts. The drivers below are the ones that actually move the number — we tell you which of them apply to you in the first reply, not after you have signed.

  • Entity size, number of bank accounts and transaction volume
  • Whether prior-year figures are audited or management-prepared
  • Reporting language: English, Chinese, or bilingual
  • Whether group reporting requires a GAAP reconciliation
  • How much of the bookkeeping we have to rebuild first

FAQ

Questions about profit repatriation

How much can actually be distributed?

Profit after tax, after the statutory surplus reserve has been appropriated, and after prior-year losses are covered. We calculate the figure and show the working, so you can see exactly what limits it.

Is withholding tax due on the dividend?

Dividends to a foreign corporate shareholder are generally subject to withholding tax at the standard rate, with treaty relief available where the conditions are met. The available rate depends on the treaty and on the documentation you can provide.

Our bank is asking for documents we do not have. Can you help?

Yes. Send us the bank's checklist and we will tell you which items we produce, which you produce, and which the bank will probably waive if you ask.

Can we pay a dividend in a loss year?

Not out of current profit. Where reserves permit, a distribution may still be possible, but it is fact-specific and we will tell you plainly whether it works in your case.

How long does the whole process take?

The audit work depends on how clean the books are. Once the distributable figure is agreed, the documentation pack follows quickly. We give you real dates in the first reply.

Tell us the amount and the bank.

Send us the entity, the figure you want to distribute and any checklist your bank has given you. You will get a written scope and a fixed fee within one business day.