04:05 Issue 14

ADVERTORIAL

China On July 7, 2025, China introduced new incentives to encourage foreign-invested enterprises (FIEs) to reinvest profits domestically, marking a strategic effort to retain foreign capital and bolster economic resilience. Issued by seven government agencies, including the NDRC and the Ministry of Finance, the measures build on earlier tax credit reforms announced in June. FIEs have been long-term contributors of up to 30 per cent of China’s GDP growth, but a recent decline in inbound investment (down 15.2 per cent in H1 2025) has heightened urgency. The new framework aims to remove practical barriers and offer financial and regulatory support for reinvestment, positioning China

to stay competitive in shifting global supply chains. In its China Briefing Dezan Shira and Associates unpack the new policy, offering insights for foreign investors navigating China’s evolving capital landscape. Philippines For foreign investors in the Philippines, repatriating profits requires careful compliance with local tax, currency, and banking regulations. While the country maintains a liberal foreign exchange policy, transfers must go through banks accredited by the Bangko Sentral ng Pilipinas and be supported by complete documentation. The repatriation process varies by business structure: subsidiaries remit dividends, branch offices transfer net profits, and representative offices are excluded due to their non- revenue-generating status. BOI- registered firms may benefit from an easier process under the country’s investment framework. Dezan Shira’s ASEAN Briefing outlines how to navigate profit transfers smoothly and avoid delays, penalties, or regulatory issues.

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ISSUE 14 GLOBAL PAYROLL MAGAZINE

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