5. The remaining balance is available for redistribution. Firstly, a resolution of the board of directors to authorize such redistribution must be signed by each director, and translated into Chinese.
6. Then an application form supported by the following documents (all in Chinese) must be submitted to SAT:
Annual audit;
Capital verification report;
Annual clearance report;
Quarterly FEIT filings;
Tax receipts proving FEIT payments have been made in full;
Bank and general details of the Chinese entity and entities receiving funds.
7. SAT will review all these documents to check that everything is legitimate and issue an evidence of FEIT payment certificate.
8. This certificate authorizes the bank to disperse funds as detailed on the certificate.
Some of these documents need to be provided by your licensed CPA firm in China (such as the capital verification report) and as the documentation can be awkward to manage for businesses overseas it is usually part of the role of the company's accountants to assist with the repatriation process and ensure transparency at all stages in the transaction. There have been cases of company employees arranging to have profits distributed elsewhere and then disappearing.
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