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Q&A Regarding State Administration of Foreign Exchange Document No. 37 (4)
Q&A Regarding State Administration of Foreign Exchange Document No. 37 (4)
Q: | What should be noted when transferring financing funds from overseas special purpose companies back to China for use? |
A: |
After the special purpose company completes overseas financing, if the financing funds are transferred back to China for use, it should comply with relevant regulations on foreign investment and foreign debt management in China. |
Q: | Do foreign-invested enterprises established by return investment need to go through foreign exchange registration? |
A: |
Foreign-invested enterprises established by return investment shall go through relevant foreign exchange registration procedures in accordance with the current foreign direct investment foreign exchange management regulations, and shall truthfully disclose the actual controller of shareholders and other relevant information. |
Q: | How to handle the repatriation of profits obtained by a domestic resident from a special purpose company back to China? |
A: |
The repatriation of profits and dividends obtained by a domestic resident from the special purpose company repatriated to China shall be handled in accordance with the regulations on foreign exchange control under current accounts. |
Q: | How to handle the repatriation of capital foreign exchange income obtained by a domestic resident from a special purpose company back to China? |
A: |
Where the foreign exchange income from capital changes obtained by a domestic resident from a special purpose company is repatriated to China, it shall be handled in accordance with the regulations on foreign exchange control under capital accounts. |
Q: | What do domestic residents need to do if they no longer hold registered special purpose company rights? |
A: |
If domestic residents no longer hold the registered rights and interests of a special purpose company due to reasons such as stock transfer, bankruptcy, dissolution, liquidation, expiration of operating period, or change of identity, or if it no longer requires registration of a special purpose company, relevant authenticity proof materials should be submitted to the relevant departments in a timely manner to handle the procedures for changing or deregistration. |