Once your WFOE/JV/RO officially starts business in China, it's required to maintain properly accounting records in accordance with accounting standards in China and report taxes in both monthly (for Value Added Tax, individual income tax) and quarterly (corporate income tax) basis. The late submissions will face penalty and surcharges.

WFOE must register with the local tax authority for tax reporting method and applying for official invoice book which allow the WFOE to issue invoice (Fapiaos)   to it's clients within China and abroad.

H & Trust could assist you and negotiating with your local officer to use the proper tax reporting method for your tax return, and submit the tax reports monthly and quarterly on your behalf.

We can also advise you with tax planning opportunities. This might help you reduce the burden of tax of business and its employee.

The details of our services are set out below:

1. Update the financial report package both with Chinese/English in accordance with the Chinese Accounting Standards;
2. Prepare monthly financial statements for tax filing purpose and submit if applicable;
3. File monthly Value Added Tax Return and Individual Income Tax Return;
4. File Corporate Income Tax Return quarterly

Q&A

1   Does china follow the International accounting standard？

    No, China has own accounting standard for different business field.

2  How long I need to keep the accounting Books and Records？

      Books and records have to be maintained in accordance with the relevant regulations. It is a requirement under the Enterprise Income Tax Law for FIEs to retain their accounting records for at least 15 years.

3   What is the Reporting Currency in China？

      RMB is the base currency for ledgers and financial reports. For enterprises using currencies other than RMB in their business transactions, one of these foreign currencies can be used as the bookkeeping base currency. However, the financial reports are required to be shown in RMB which is translated from such foreign currency.

4   What language accounting book should be used？

    Accounting records have to be maintained in Chinese. Ethnic minorities may use their dialects whilst FIEs may choose to use Chinese solely or a combination of Chinese and a foreign language.

5   What is the accounting Period？

      The accounting period in China is stipulated from 1 January to 31 December.