Overseas Equity Transfer

A foreign investment enterprise

A foreign investment enterprise

Tax authorities may challenge whether the price of equity transferred between two affiliated companies is reasonable or not.

Due to changes in the nature of production or operation, enterprises may need to: regularly apply for corporate income tax exemptions or reductions; regularly apply for VAT refunds; or withhold corporate income taxes in the event of an equity transfer.

Tax authorities may challenge whether the price of equity transferred between two affiliated companies is reasonable or not.

A foreign investment enterprise that transfers equity overseas needs to pay corporate income tax on its income from the transfer. The determination of reasonable income from the transfer that

＊Agreements to transfer equity between corporate investors
＊Equity transfer between investing parties due to enterprise readjustment of registered capital by corporate investors
＊Equity transfer between related enterprises and/or other transferees by corporate investors with agreement from other investors.

＊Transfer of initial investor equity to a successor due to merger or separation of corporate investors
＊Change of equity or investors due to failure on the part of the corporate investor to perform investment duties as stipulated in enterprise contract or articles of association, with approval from the relevant departments in charge of examination and approval

＊Treatment of ownership of equity by inheritors, creditors, or other beneficiaries in accordance with the relevant laws and regulations and due to bankruptcy, dissolution, forced liquidation, revocation of license, or death of the corporate investor
＊Ownership of investor equity by pledgees or beneficiaries in accordance with legal terms or contracts and agreed to by investors

Risk Control

Efficient Process

Post-Service Payment Guarantee

We analyze enterprises' current situations and develop the most suitable solutions with respect to relevant policy and to minimize the enterprises' tax risk.

Our highly efficient work processes allow us to solve many problems faced by foreign investment enterprises in China. Our efficient processes come from a familiarity with various business models and structures and strong contact with the relevant administrative departments.

We bill after we have provided our services. We find that this helps to control costs for clients in the earlier stages of projects, and it is our guarantee of service quality to our clients. In this way, our clients are not billed excessive amounts before their problems are completely resolved.