Financial & Tax Services Stay Compliant in China

Financial & Tax Services: Stay Compliant in China

— Your Reliable Partner for Accounting, Tax Filing, and Corporate Compliance

1. Introduction

Operating a business in China offers vast opportunities, but it also comes with strict financial and tax compliance requirements. Whether your company is newly established or has been running for years, staying compliant with China’s evolving tax laws and accounting standards is crucial to avoid penalties and ensure smooth operations.

2. Key Financial & Tax Obligations in China

(1) Bookkeeping and Accounting Standards
All companies registered in China — including wholly foreign-owned enterprises (WFOEs), joint ventures, and representative offices — must maintain accounting records in accordance with Chinese GAAP and use RMB as the base currency. Monthly bookkeeping and proper documentation of every transaction are mandatory.

(2) Tax Registration and Filing
Upon incorporation, companies must register with the local tax bureau. The main tax obligations include:

• Value-Added Tax (VAT): filed monthly or quarterly, depending on the business type.
• Corporate Income Tax (CIT): filed quarterly and settled annually.
• Withholding Tax: applicable for cross-border payments such as dividends or service fees.

(3) Annual Audit and Reporting
At the end of each fiscal year, companies are required to complete an annual audit conducted by a certified Chinese CPA, followed by annual tax reconciliation, and submit annual reports to the Administration for Market Regulation (AMR).

(4) Payroll and Individual Income Tax (IIT)
Employers must calculate and withhold employees’ IIT monthly, contribute to mandatory social insurance and housing fund schemes, and ensure timely declaration to the tax bureau.

3. Why Compliance Matters

Failing to comply with China’s accounting or tax obligations can result in:

• Heavy fines or late-payment surcharges
• Restrictions on future tax filings or bank remittances
• Suspension of business license or credit downgrade
• Proper compliance not only protects your company but also enhances credibility with partners, banks, and authorities.

4. How We Can Help

Our China Financial & Tax Service team offers a one-stop solution to keep your business compliant and efficient:

• Monthly bookkeeping and financial statements
• VAT, CIT, and IIT filing
• Annual audit and tax clearance
• Payroll management and social insurance declaration
• Compliance advisory for cross-border transactions

5. Conclusion

Navigating China’s financial and tax system may seem complex, but with professional support, it can be seamless. We ensure your company stays compliant, avoids unnecessary risks, and focuses on what matters most — growing your business. For inquiries, please contact us at +86-755-82143512 or email anitayao@citilinkia.com. Visit our website at https://tannet-group.net/.