Nicolas Coster is an expert when it comes to Chinese business law and has 16 years’ experience in China helping foreign companies with the legal issues they face when investing in or liquidating assets in China. In this episode of Daxue Talks he tells us about the criteria that must be met before profits from your investment can be taken out of China.

Takeaways:- Irrespective of where the investment comes from, the Chinese government will look into the origin of capital inflows. - Once all taxes are paid on money made in China, there is no issue with taking dividends out of the country to repay investors. - When a parent company takes money out of its China subsidiary, tax rates differ according to the arrangements between the company’s country of origin and China. For most countries the rate is either 5% or 10%, however using a shell company to take profits out of China will incur higher rates of tax.

Jump to questions:00:00 Introduction00:40 If money is lent outside of China and serves the purpose of buying a company in China, are there limitations on this?01:15 How do you get the money out of China to pay the capital interest? 02:30 In which context is there a 5% tax? and in which context is there a 10% tax when getting money out of China as a dividend to a parent company?

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What is Daxue Talks? Daxue Talks, a China business vlog powered by daxue consulting, a china-based strategic market research company founded in 2010! With Daxue Talks, you will stay up to date with all the latest business updates in China. Every day, you will learn from china-based experts who share their knowledge about the Chinese market in 2-5 minutes.

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