Quick answers about bookkeeping, tax, treasury and payroll in China.
What bookkeeping and reporting does a China business need?+
Monthly verification of vouchers, preparation of financial statements (Balance Sheet and P&L) under PRC GAAP, and filing of all expense evidence by category and date.
How often are taxes filed in China?+
VAT and surcharges are computed and declared monthly; Corporate Income Tax (EIT) is computed quarterly and yearly. Stamp duty declarations are also handled on a regular basis.
What is the difference between Small-Scale and General VAT taxpayer?+
China classifies VAT taxpayers into Small-Scale and General types with different rates and deduction mechanisms. The right status depends on turnover and the nature of your business; your filings are structured accordingly.
How are withholding taxes on dividends or profit repatriation handled?+
When a foreign shareholder repatriates profits, withholding tax may apply depending on the tax treaty and company type. We assist in preparing the relevant declarations and coordinating with the tax authorities.
What is involved in treasury and payment management?+
Credit collection of bank statements, weekly payment schedules, e-bank payment execution, monthly bank balance reconciliation, and ongoing treasury management.
How is payroll and individual income tax (IIT) handled?+
Monthly salary computation for local and foreign employees, IIT declaration, pay slip issuance, the annual IIT handling-fee refund application, and labor cost reporting.
Do I need a person in China to handle my tax and accounting matters?+
Your team can coordinate tax, accounting and payroll remotely, with an advisory partner handling the filings and liaison with local authorities on your behalf.
Can bookkeeping and payroll be fully managed remotely?+
Yes — bookkeeping, payroll computation, filings and treasury management can be operated with local advisory support coordinating the tax and banking formalities.
How does e-invoicing (e-Fapiao) work?+
Fully digitalized electronic invoices are managed through the unified tax platform, including issuance of digital invoices, verification of input VAT credits, and digital tax account maintenance.
What happens during year-end closing and the annual statutory audit?+
Year-end closing finalizes the annual accounts, after which an annual statutory audit is coordinated with a CPA firm, with the necessary documentation prepared for a smooth process.
Does the 5-year capital contribution rule affect my accounting?+
The 2024 China Company Law requires shareholders to fully pay subscribed registered capital within 5 years. This affects how contributions are recorded and reported in the company accounts.
Do you help with annual audits?+
Yes — we coordinate with CPA firms for annual statutory audits and tax audits, helping prepare the necessary documentation for a smooth process.
Who handles the tax liaison with authorities?+
Our team acts as the liaison for regular tax matters, coordinating filings and ongoing correspondence with the relevant tax authorities.
