Regulations for the Implementation of the Law of the People's Republic of China on Chinese-foreign Joint Ventures Article 76 The principles of profit distribution of a joint venture after paying income tax in accordance with the Enterprise Income Tax Law of People's Republic of China (PRC) are as follows:

(1) Withdraw reserve fund, employee bonus and welfare fund and enterprise development fund, and the withdrawal ratio shall be determined by the board of directors;

That is to say, a wholly foreign-owned enterprise must withdraw 10% of the reserve fund, but a foreign joint venture can withdraw the reserve fund, and the proportion is determined by the board of directors, and there is no hard and fast regulation in the country.