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如您希望下载PDF版本，请点击文末“ 阅读原文 ”获取。 (This article was originally published by ALM China Law & Practice on 5 August 2024) Standfirst: The amended PRC Company Law will have many, far-reaching effects, including motivating companies to reduce their registered capital in order to optimize capital utilization. This article introduces the motivations and tax implications associated with one possible route: formal capital reductions. Capital reductions can be categorized in various ways, and tax implications and accounting treatments vary accordingly and should be carefully considered. Formal Capital Reductions do not lead to a net asset outflow from the company Under one scenario (reducing the unpaid subscribed capital to ease an overly- large capital contribution burden), there will be no accounting and tax implications for both the company and its shareholders. However, under a different scenario (reducing the paid-in registered capital to offset l
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