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Paying an employee of a Chinese subsidiary

Bonus payment

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Hi All,

Any advice around this would be welcome:

UK parent company has a 100% Chinese sub and the parent wants to pay a bonus to the head running the Chinese entity without doing a management charge as they wish to incentivise by way of Sterling payment. Is this possible and if so how ?

Thanking in advance.

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By Accountant A
02nd Dec 2019 18:03

Yes it's possible but no tax relief for UK co and (presumably) local tax for recipient.

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By scvin
03rd Dec 2019 12:25

Thanks, Accountant A! Appreciate your thoughts.

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