China Accounting Standards & Tax Compliance in China
China Accounting's Basic Concepts
China Accounting, Bookkeeping, Financial Statements and Tax Compliance Services
Have an Understanding of China Accounting Standards
China Accounting Standards (CAS)
International Financial Reporting Standards (IFRS) are standards commonly employed in western countries by using one standard global language and standard for international business accounting so that financial reporting is understandable and comparable across different countries.
While all foreign enterprises in China must abide by the Chinese Generally Accepted Accounting Principles (abbreviated “GAAP”), also called as” China GAAP,” “PRC GAAP” or “CAS” (Chinese Accounting Standards.)
China Accounting Standards (CAS) vs. IFRS
- China accounting year starts January 1st and ends December 31st;
- The base and record currency of bookkeeping and financial statements is RMB(Renminbi);
- Charts of accounts must abide by” accounting system for business enterprises” in China;
- Chinese is the sole officially recognized language for financial reporting and bookkeeping;
- China accounting software must meet the local market standards;
- All invoices for bookkeeping must be the official and authentical invoice (“Fapiao” in Chinese);
- Corporate income tax and turnover tax filing should report monthly;
Taking care of your accounting obligations and provide quick access to experienced accountants.
We have a secure network of online team and local teams to manage your accounting service to assure you could keep compliant with China accounting laws and policies and obtain as much support as possible.
Before we get down to China accounting total support services in details, let’s brief some basic concepts related to accounting in China services.
China Tax Registration Certificate
China Tax Registration Certificate is the legal document issued by Chinese authority which bears China company’s legitimate name, company type, registered address, authorized representative’s name, registered capital, establishment date, the business term, business scope and China tax identification number.
China Tax Identification Number (TINs)
The significance of China tax identification number is the same as the ID number for a citizen, unique and inalterable. China already combines business license with the tax registration certificate into one Business License in recent years and introduces the unified social credit code be consistent with the tax identification number.
China Company Taxpayers Registration
Although the China tax registration certificate unites with the business license, it does not indicate the company taxpayer registration could omit. Each company established in China is requested to apply for the company taxpayer registration within 30 days since business license issued.
Documents checklist for reference:
- Company Business License
- Article of Association
- Approval Letter
- Approval Certificate
- Passport / ID of Legal Representative
- Taxpayer Registration Form
- Other Required documents based on different office address;
China Company Taxpayer Types
There are altogether only two types of company taxpayer, i.e., “Small-scale VAT Taxpayer” and “General VAT Taxpayer.” The typological criteria are the annual turnover, which varies according to industry classification. It is generally recommended to start with the small-scale VAT Taxpayer for the first year and could upgrade to General VAT Taxpayer if the business expands.
Electronic Tax System Agreement (ETS Agreement)
To promote paperless tax collection and facilitate tax payment of company taxpayer, State Administration of Taxation (SAT), the Chinese Ministry of Finance (MOF) bureau and national banks jointly launch the Electronic Tax System, abbreviated as” ETS.” When the company’s business license and account opening permit issued, the ETS agreement should be arranged and stamped.
The tax-control disk is hardware commonly used for the record and transmits tax data between the company and the tax bureau. A tax-control CD must install specific software before invoice issue.
Total accounting, bookkeeping, financial statement, and tax compliance support services to safeguard your China expansion.
China accounting standard differs from IFRS in the western countries, and tax compliances could be a hurdle for major foreign enterprises when they want to expand Chinese market.
Business China provides total accounting, bookkeeping, financial statement, and tax compliance support services to manage your accounting services in China, offer accounting help and can save you significant time and money as well as the hassle of navigating the complete tax system.
Our services include:
- Tax Registration
- Accounting system set-up
- Advice on accounting software selection
- Maintenance of cash book
- Bookkeeping services
- Purchase blank VAT invoice
- Invoices management services
- Keeping of company invoice machine
- Monthly VAT filing (Including calculation of tax burden)
- Filing and submission of monthly and quarterly financial statement (PRC accounting standards)
- Management of Bank Account Services
- Tax Declaration
- Annual audit assistance
- Annual inspection support
- Monthly individual income tax (“IIT”) filing
- Finance Consulting
- We can offer you complete accounting and tax compliance support services to safeguard your China expansion.
- We can take care of your accounting obligations and provide quick access to experienced accountants.
- Business China is a reputed licensed accounting firm in China provide accounting services according to Chinese Accounting Standards (CAS).
- Our account filing and service process strictly follow the national and local tax department’s requirement.
- We can reduce startups’ operating costs while entrepreneurs can enjoy the service of a professional team.
- We offer a free consultation related to the accounting service.
Should you be interested in our services or have any questions, please fill in our ‘Request a Proposal’ form, and we will get in touch with you as soon as we can.