- Q:
- Does Foreign Investment Enterprise need evaluation by relevant department for its financial contribution by means of equipment?
- A:
- Yes, it needs approval by examining and approving body, the value of contributed equipment shall be assessed by Commodity Inspection and Testing Bureau, and tariff should be paid as per the assessed value.
- Q:
- How can Foreign Investment Enterprise process Export Tax Refund?
- A:
- Foreign Investment Enterprise that produces and exports goods within the scope of business, in compliance with the Administrative Measures on Tax Rebates (Exemptions) for Exported Goods and the Notice on Certain Issues of Tax Affairs in Foreign Investment Enterprise, can use relevant supporting documents to apply for "Exemption, Credit and Tax Rebate" formalities to competent tax authority per month.
- Q:
- Can the profits distributed to foreign investor from Foreign Investment Enterprise be remitted abroad?
- A:
- Yes. The share of profits attributable to foreign investor can be remitted out of China by virtue of duty paid proof.
- Q:
- Shall foreign investor pay tax for its share of dividends from Foreign Investment Enterprise?
- A:
- No. Because the dividends distributable to foreign investor belong to profits after tax, foreign investor shall not pay profit tax further.
- Q:
- What preference does foreign investor enjoy if it reinvests its share of profits distributed from Foreign Investment Enterprise?
- A:
- Foreign investor who reinvests its earned profits into export-oriented enterprise or technologically advanced enterprise within China, for an operating period not less than five years, after application to and approval of tax authority, shall be entitled to refund of entire corporate profits tax paid on its reinvestment. Foreign investor who reinvests in general industrial enterprise shall be entitled to refund of 40% corporate profits tax paid on its reinvestment.
- Q:
- Can Foreign Investment Enterprise raise loan with bank in China?
- A:
- Yes. Foreign Investment Enterprise can apply for loan in foreign currency or RMB to bank in China according to the needs of business activities.
- Q:
- Can Foreign Investment Enterprise open account in foreign bank in mainland China?
- A:
- Foreign Investment Enterprise, by virtue of business license, can open account in foreign currency and RMB deposit account with banks or other financial institutions permitted to operate foreign exchange by national foreign exchange administration.
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