Using your excess funds from China to conduct small, low-risk financial transactions and increase profitability


Source: bollyinside.com bollyinside.com

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One obvious option available to companies is to simply repatriate the excess funds as dividends back to HQ. The funds can then be redeployed elsewhere. But what about if there is no urgent need for redeployment of those funds? Is your China operation among the most likely candidates for future investment in the future? If so, repatriation of funds overseas as dividends may not make sense, particularly when you consider the tax on dividend repatriation that will be incurred (10% of repatriated amount in the case of repatriation to most countries). CFOs will also be aware that the interest rate...