Foreign enterprises doing business in China have figure out the ways to transfer payments into and out of the country. Getting money into China is not a big problem. China doesn’t levy an inheritance or gift tax on cash sent into the country, which means your recipient won’t have to worry about filling out any extra forms come tax time, no matter how much you’re transferring in. If you’re transferring money for a purchase, they’ll report it just like they would any other business income.
The complexities arrive at the time of getting money out of China. If you wish to transfer money out of China or if you are outside of China and are expecting payment for services rendered, be sure that you are aware of the process and any limitations that apply. Chinese officials are scrambling to keep money in its borders, and intensifying efforts to keep money from leaving the country.
Companies that want to repatriate their capital outside of China can do it using various ways such as–
>> Getting money out of China Via Hong Kong
>> Getting money out of China via Western Union
>> Getting money out of China via Chinese Bank
>> Sending money out of China via Bitcoin
>> Sending money out of China via PayPal
>> Sending money out via investing
>> Property as a vehicle for getting money out of China
According to the South China Morning Post “ Analysts said that despite tighter scrutiny, the outflows were likely to remain strong for years to come, with companies and individuals looking for better investment opportunities while safeguarding their money against a weakening Chinese economy and a falling yuan currency.”
Every country around the world has measures to curb money laundering and tax evasion. In order to bring this money into China, whether wired, transferred or in cash, anything over 10,000 RMB will be monitored. Traditionally the US Dollar has been used as the currency of choice for the export industry in China, and suppliers will often invoice in USD. It depends how much you are trying to transfer out of the country. Chinese citizens are allowed to exchange 50k USD per year. You could get a friend to help you exchange and wire your money out.
The Chinese government often changes money transferring policies from day to day and from bank to bank. So it becomes really important to seek advice with your China lawyer and Chinese bank to make sure you have maintained all the regulatory compliances for transferring or sending money out of mainland China.