Global

Details

  • Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/25/2014

China - Foreign exchange rules on overseas lending, dividends 

April 25: The State Administration of Foreign Exchange issued guidance concerning the rules for overseas lending by entities in China.

The new “relaxed” regulations are intended to provide greater flexibility for Chinese entities that want to undertake overseas lending activities and also to provide alternatives for foreign investors that need overcome the so-called “cash trap” problem that may be encountered in China.


The new guidance also includes provisions intended to ease the foreign exchange requirements relating to dividends.


Read an April 2014 report prepared by the KPMG member firm in China: Overseas Lending and Profit Repatriation by China Entities eased under new Foreign Exchange Regulations




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