Certificate Course
Optimizing Profit Repatriation
From China Via Dividend
Payments
Understand the process. Assess the tax implications. Make better informed repatriation decisions.
Certificate Course
4 weeks
approx. 4 hours/ week
100% online
Open Enrollment
EUR 499
Course Overview
Over four weeks, you will develop a comprehensive understanding of profit repatriation from China through dividend payments. The course covers the key conditions that companies must meet before distributing dividends, how to calculate net dividend payments, and the procedures and requirements involved in processing dividend payments from China to an overseas parent company.
The taxation of dividends paid from China can have significant implications for both the China-based subsidiary and its foreign parent company. Depending on the applicable Double Taxation Agreement (DTA) between China and the jurisdiction in which the parent company is located, different tax treatment and potential treaty benefits may apply. You will develop a practical understanding of Corporate Income Tax and Withholding Tax considerations, including the requirements that need to be met to access applicable tax treaty benefits and potentially reduce the overall tax burden.
The knowledge and insights gained throughout the course are directly applicable to professional finance, tax and management responsibilities. To support informed decision-making, the course combines theoretical knowledge with practical calculation examples, process flows, case applications and checklists that can be used to understand and assess dividend repatriation from China.
Course Structure
Five Focused Units.
Unit 1: Introduction
The first unit provides an orientation to the course and the online learning environment. The unit does not carry credits. You are encouraged to go through the materials at their own pace to get accustomed to the online medium.
Unit 2: Processing Dividend Payments
Payment of dividends is most commonly applied by organizations to repatriate profits made by their Mainland China-based subsidiary to the offshore parent company.
This unit discusses how organizations can process dividend payments in detail. First the preconditions that organizations must meet to be able to effect dividend payments are discussed, followed by the calculation of net dividends as well as the applicable payment procedure that has to be complied with.
Unit 3: Taxation of Outbound Dividend Payments
Depending on the bilateral agreements between China and the contracting country or non-state tax jurisdictions, generating income in China has tax implications which might affect the overall tax burden of both the China-based subsidiary company and the foreign parent company.
In this unit the liabilities related to Corporate Income Tax and Withholding Tax are discussed, as well as the requirements organizations have to meet to become eligible to reduce the liability.
Unit 4: Eligibility for DTA Benefits
In many of the Double Taxation Agreements concluded between China and foreign countries, non-state tax jurisdictions or regions, preferential withholding tax rates for income out of dividend sourced from China are only applicable when the recipient holds a beneficial ownership status over the relevant income. A “Beneficial Owner” refers to a person who has ownership over and the right to control income, or the rights or properties that generate such income.
Unit 5: Application for DTA Benefits
In recent years, the policy and procedure for the application of Double Taxation Agreement benefits has been updated multiple times, each time relaxing the reporting and approval requirements.
In this unit the latest regulations on application for bilateral tax treaty benefits which entered into effect per 1 January 2020 as well as the requirements organizations need to meet are discussed in detail.
Who Is This Course For?
This course is particularly relevant for professionals involved in China-related corporate finance, taxation and profit distribution, including:
- CFOs and Finance Directors
- China General Managers
- Financial Controllers
- Group Finance Managers
- Tax Managers and Tax Advisors
- Accountants
- Corporate Treasury Professionals
Practical Tools Included
This course includes the following tools that can be directly applied in real-work work environments:
- Calculation Examples: Understand how dividend amounts and relevant tax considerations can be calculated.
- Process flows: Visualize the key steps involved in processing dividend payments.
- Checklists: Use structured checklists to support the assessment and preparation process.
- Case applications: Apply the concepts taught in this course to realistic China finance situations.
Earn Your Credential
Upon successful completion of the masterclass and the required assessments, you will earn a digital certificate of completion from the Institute of China Studies.
Your certificate provides a formal record of your completion of the program and can be retained as part of your professional learning portfolio.
Official Recognition
Issued by the Institute for China Studies.
Digital Format
Easy to download, share and add to your profile.
Your Course Professor
Dr. Richard van Ostende, DBA
Richard van Ostende is founder of the Institute for China Studies. He combines extensive professional experience and practical expertise in corporate finance, foreign investment and business strategy.
Not Sure Where To Start?
Book a free consultation with us.
Choosing the right program or solution for your organization can be challenging. Speak with an ICS advisor to discuss your objectives, experience and requirements.
Not Sure Where To Start?
Looking for an answer?
You may find the information you need in our Frequently Asked Questions, covering programs, admission, learning pathways, certification, fees and more.
Related Courses
Continue developing your China finance expertise.
Related Courses
Continue developing your China finance expertise.
