• Service: Tax, International Tax
  • Type: Regulatory update
  • Date: 6/2/2014

China - Centralized foreign currency management for multinational corporations 

June 2:  China’s State Administration of Foreign Exchange issued guidance concerning a centralized foreign currency management for multinational corporations.

The guidance aims to expand prior innovative free trade zone (FTZ) foreign exchange management measures to the whole nation, allowing qualified multinational companies to have access to incentives through centralized foreign exchange management that, in turn, may provide greater financing flexibility and efficiency in foreign exchange remittance.

The guidance:

  • Explains the policy for expanding financing and investment activities from the free trade zone (FTZ) to a nationwide level
  • Sets out the administrative procedures regarding how multinational corporations can centralize their operations to manage the foreign currency (forex) of their domestic and foreign member companies

Read a May 2014 report prepared by the KPMG member firm in China: State Administration of Foreign Exchange issues policy on centralised foreign currency management for multinational corporations

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