China has strict foreign currency control, no matter foreign currency paid in or out, it will be controlled by SAFE (the State Administration of Foreign Exchange), your tax bureau and your bank. So it’s important to know how to make cross-border transfer legally?
Based on our actual experience during past many years, we summarized two options for your review:

Option #1: Profit distribution
If you made profits in China, it’s allowed to be distributed after annual audit. You can take it back to your home country after paid tax with application at tax bureau. It’s different depends on who is the shareholder of your WFOE.

Option# 2: Non-Trade Cross-Border Transfer
As a WFOE registered in China, you can do business in the world, it means you can receive income from outside of China, and you can also pay money out to your overseas suppliers or partners. That’s the main topic what we will share with you here:
What is Cross-Border Transfer? How to make Cross-Border Transfer legally?
Cross-Border Transfer

The money paid out from China to overseas due to Non-Trade business, it was called Cross-Border Transfer (CBT).

What you should prepare for Cross-Border transfer:
1) Contract / agreement
It should be in Chinese-English or just Chinese version;
2) Proforma invoice
It should be in Chinese-English or just Chinese version;
3) Other support docs based on tax bureau’s evaluation.
Tips: The contract should be recorded by tax bureau within one month (30 days) once signed. If more than 30 days, it will be rejected by tax bureau directly.

The processes are different depends on your contract value higher or lower USD50, 000.
1. If contract value is higher USD50, 000, the process is A-B-C-D, details as below:
A-1) Contract record at tax bureau
(Report to tax bureau within 30 days after contract signed);
B-2) Application process at tax bureau;
C-3) Pay tax (about 10%~20%) after tax bill released;
D-4) Transfer money out at your bank.

Regarding the payment time:
When you do the application at tax bureau, you will decide the estimated payment date, you can only transfer it ahead of 1~2 weeks, cannot make it too earlier; If you didn’t finish the payment at due date, bank has right to request you to re-do the process at tax bureau.

2. If contract value is less than USD50, 000
Most banks will accept to transfer it out firstly, the process will be D-A-B-C.
Anyway you must do the tax bureau process with tax payment in time.

D-1) Transfer money out at your bank.
You can pay the money out firstly and then come back to do tax processes.
A-2) Contract record at tax bureau
(Report to tax bureau within 30 days after contract signed);
B-3) Application process at tax bureau;
C-4) Pay tax (about 10%~20%) after tax bill released;

Regarding the payment time:
The total lead time is from 3 working weeks to 2 months, depends on which district in Shanghai and when you start the application.
Based on our experience, Dec, Mar and Apr are the busiest period for tax bureau, which will take longer time to get approval.