Distributable profit check
Review the audited accounts and any prior losses to confirm the amount available for distribution.
Who it is for
Who this service is for
- WFOEs and joint ventures with retained profit;
- parent companies planning group cash flows;
- finance teams preparing a first dividend; and
- investors comparing dividends with other payment routes.
Scope
What Hongda does
The final scope is agreed for each engagement.
Shareholder resolution
Prepare the profit-distribution resolution in line with the articles of association.
Withholding tax
Prepare the withholding tax filing and review whether treaty relief may apply.
Bank remittance documents
Prepare the documents the bank requires to process the outward payment.
Other payment routes
Outline service fees, royalties and interest as alternatives. Each has its own tax and transfer-pricing consequences.
Records
Keep the filing and remittance records for audit and future review.
Process
How it works
- 1
Review the annual accounts and tax position.
- 2
Confirm the distributable amount.
- 3
Prepare the shareholder resolution.
- 4
Prepare the tax filing.
- 5
Prepare the bank documents and coordinate the remittance.
- 6
File and keep the records.
FAQ
Frequently asked questions
When can a WFOE pay a dividend?
After the annual accounts and tax position are settled. The conditions that apply are confirmed for your company before the resolution is prepared.
Is withholding tax due on dividends?
Withholding tax rules and any treaty relief are confirmed for your case. Hongda prepares the filing within the agreed scope.
Can profit be paid out as service fees instead?
Other routes exist, but each has tax and transfer-pricing consequences. They are assessed case by case.
Related services
Talk to Hongda
Tell us what you need. We confirm the scope with you before any work starts.