In today's global business environment, many companies, especially foreign-invested enterprises, are required to remit various types of funds to overseas related or non-related parties, such as royalty, service fee, interest, rental, dividends and cost reimbursement, etc. However, the process of remitting such funds is often complex and subject to strict regulations by Chinese tax authorities.

Challenges Faced by Companies

Over the past few years, Chinese tax authorities have implemented a series of regulations to strengthen the controls on the remittance of non-trade items. These regulations cover various aspects, including application/registration procedures and tax treatment. As a result, companies need to ensure that their remittance of non-trade items is handled in a fully compliant and tax-efficient manner, based on their specific situations and the relevant regulations.

Our Expertise in Remittance Assistance

We can provide professional remittance assistance services to companies facing challenges with non-trade item remittance. Our team has extensive knowledge of the latest tax regulations and best practices in this area. We work closely with our clients to understand their specific business needs and ensure that their remittance activities comply with all relevant tax regulations and are tax-efficient.

For instance, we will help review the transaction arrangement and the pricing mechanism, advise on whether the pricing is reasonable (i.e. on the arm’s length basis), review contract terms, and prepare supporting documents to the tax authorities, etc.