Repatriation and Reinvestment Benefits

In the following article broadly explains everything related to the repatriation of profits or profits generated by foreign investment and reinvestment possibilities thereof. In the article is not country-specific work, however you can contact the author, who has extensive experience in the European market, specifically in Spain.

For everything related to investments in China and Hong Kong, you can contact our firm, CW CPA.

Repatriation and Reinvestment Benefits –

The legitimate aim of every entrepreneur or investor is to obtain the greatest benefits from their investment. The investment process ends with obtaining the benefits produced by their investment, once all its obligations, especially the tax.
Repatriation Benefits should not be regarded or treated as an isolated action of the investor, but a link at the end of a long process that begins with the project investor, the effective realization of the investment, business development and obtaining surpluses or profits from their exploitation.

Among the most widespread regulations for transactions between parent and subsidiary, is the requirement of transfer pricing to market and do not exceed certain percentages of income that could be considered abusive or uncorrelated with the activity or size of the subsidiary, plus the taxation that support most of these concepts, and the non-deductibility as expenses for the purposes of Income Tax.
Therefore, the actions planned by the investor or business must not take relationship between the parties involved. In the case of international trade operations, companies can resort to centralizing purchasing, distribution and logistics, based in low-tax jurisdictions.