Our local experts help you maintain accurate records, meet filing deadlines, manage tax obligations and reduce the risk of penalties. Whether you are establishing a new business in China or managing an existing operation, our accounting professionals provide the reliable back-office support you need to operate with confidence.

Our China Accounting and Tax Services

Corporation China offers a comprehensive range of accounting, tax and back-office services for companies operating in China.

Monthly Bookkeeping

We record and organize your company's financial transactions in accordance with applicable Chinese accounting requirements. Our bookkeeping support may include:

• Recording sales and purchase transactions
• Reviewing bank statements
• Recording expenses and reimbursements
• Managing accounts payable and receivable
• Reconciling bank accounts
• Recording fixed assets and depreciation
• Maintaining general ledgers
• Reviewing supporting documentation
• Managing fapiao records
• Preparing monthly financial reports

Accurate monthly bookkeeping provides the foundation for tax filings, financial planning and annual compliance.

Financial Reporting

We prepare financial reports that help management understand the company's financial position and performance. Depending on your requirements, reports may include:

• Balance sheet
• Profit and loss statement
• Cash-flow statement
• Trial balance
• General ledger
• Accounts receivable and payable reports
• Expense analysis
• Budget-versus-actual reports
• Management reporting packs
• Consolidation support for overseas headquarters

Reports can be prepared in formats suitable for both Chinese authorities and international management teams.

VAT and Fapiao Compliance

Value-added tax is a central part of China's tax system. Businesses must correctly classify transactions, issue appropriate fapiaos and submit VAT declarations according to their filing schedule. Our VAT services may include:

• VAT registration support
• Taxpayer-status assessment
• VAT calculation
• Input VAT review
• Output VAT reporting
• Fapiao issuance support
• Fapiao verification and reconciliation
• Golden Tax System coordination, where applicable
• VAT refund and export-related support
• Guidance on ordinary and special VAT fapiaos

Fapiao errors can create accounting and tax problems. We help ensure that invoices are properly issued, collected, recorded and retained.

Corporate Income Tax

Companies in China are generally required to calculate and report Corporate Income Tax based on their taxable income and applicable tax rules. We assist with:

• Monthly or quarterly Corporate Income Tax calculations
• Taxable-income adjustments
• Deductibility reviews
• Annual tax reconciliation
• Supporting schedules
• Tax payment calculations
• Tax filing preparation
• Tax inspection support
• Tax planning within legal and commercial limits

The standard Corporate Income Tax rate is generally 25%, although preferential rates may be available for qualifying small enterprises, high and new technology enterprises, encouraged industries and certain regional or sector-specific activities. Eligibility depends on current regulations and the company's circumstances. Businesses should not assume that a reduced rate applies without confirming the relevant conditions.

Individual Income Tax and Payroll Compliance

Employers in China normally have obligations relating to salary payments, Individual Income Tax withholding and social insurance contributions. Our payroll and employment-related accounting services may include:

• Monthly payroll calculations
• Individual Income Tax withholding
• Social insurance calculations
• Housing fund calculations, where applicable
• Salary payment schedules
• Employee expense reimbursements
• Annual Individual Income Tax support
• Expatriate payroll coordination
• Payroll reporting for overseas headquarters

Payroll compliance can be particularly complex where employees are foreign nationals, work across several jurisdictions or receive compensation from both Chinese and overseas entities.

Tax Registration and Ongoing Tax Management

Newly established companies must complete relevant tax registrations and establish appropriate tax and invoicing arrangements. We can help with:

• Tax authority registration
• Tax-category assessment
• VAT status and filing arrangements
• Fapiao qualification applications
• Online tax system setup
• Tax account administration
• Filing calendar management
• Tax payment coordination
• Communication with local tax authorities

We also review changes to your business activities and advise when a new registration, filing or tax treatment may be required.

Annual Statutory Audit

Many foreign-invested companies in China are required to have their annual financial statements audited by a qualified Chinese Certified Public Accountant firm. Corporation China can coordinate the audit process by:

• Preparing accounting records
• Reviewing supporting documents
• Organizing audit schedules
• Liaising with the CPA firm
• Responding to auditor questions
• Coordinating adjustments
• Assisting with the final audit report
• Providing follow-up support

Audit requirements may differ depending on the company type, industry, local authority requirements, financing arrangements and other circumstances. We confirm the applicable requirements for your entity.

Annual Tax Reconciliation

China's annual Corporate Income Tax reconciliation process requires companies to compare their provisional tax filings with their final taxable income for the previous financial year. This may involve:

• Reviewing annual financial statements
• Identifying tax adjustments
• Reviewing deductible expenses
• Checking asset depreciation
• Reviewing employee benefits and entertainment expenses
• Assessing related-party transactions
• Preparing supporting documentation
• Filing the annual tax reconciliation
• Calculating additional tax or refund amounts

The annual reconciliation deadline is generally at the end of May for the previous calendar year, although deadlines can change and special extensions may apply.

Government and Annual Compliance Reporting

In addition to accounting and tax filings, companies may need to complete annual reports with different government departments. Depending on the business, this can include reporting to:

• State Administration for Market Regulation
• Tax authorities
• State Administration of Foreign Exchange
• Customs authorities
• Commerce authorities
• Social insurance authorities
• Housing fund authorities
• Industry-specific regulators

The applicable reports and deadlines vary. We maintain a compliance calendar and coordinate the required submissions for your China entity.

Banking and Payment Support

Our team can assist with finance-related administrative tasks, including:

• Bank account administration
• Payment documentation
• Bank reconciliation
• Foreign currency payment support
• Dividend and profit-remittance documentation
• Salary payment schedules
• Supplier payment processing
• Bank communication
• Documentation for foreign exchange procedures

Banks may request contracts, invoices, fapiaos, board resolutions, tax records and other supporting documents. We help organize the information needed for routine banking matters.

Understanding Chinese Accounting Standards

China uses Chinese Accounting Standards, commonly referred to as CAS. These standards have developed closer similarities to International Financial Reporting Standards, but differences remain. Foreign companies should understand that:

• Chinese statutory accounts must follow applicable Chinese requirements
• Reporting formats may differ from those used by a parent company
• Tax treatment and accounting treatment are not always identical
• Supporting documents, particularly fapiaos, are important
• Certain international accounting policies may require adjustment for Chinese statutory reporting
• Local tax and accounting practice can vary in implementation

For example, the treatment of asset valuation, depreciation, provisions, revenue recognition, foreign exchange and tax adjustments may differ between Chinese statutory accounts and group reporting under IFRS or US GAAP.

We help bridge the gap between Chinese statutory accounting and international management reporting. Where necessary, we can prepare reconciliation schedules and explain material differences to overseas directors and finance teams.

Common Accounting and Tax Mistakes in China

Foreign companies commonly encounter problems such as:

• Treating China accounting as the same as overseas accounting
• Missing monthly or quarterly filing deadlines
• Failing to retain valid fapiaos
• Paying expenses from personal accounts
• Mixing company and shareholder funds
• Recording overseas transactions incorrectly
• Ignoring payroll and Individual Income Tax obligations
• Assuming a tax incentive applies automatically
• Failing to reconcile accounting and tax records
• Not preparing for the annual audit
• Using unsuitable intercompany agreements
• Making payments without adequate supporting documentation
• Neglecting annual company reporting
• Failing to update registration information after a company change

Professional accounting support helps establish consistent procedures and reduces these risks.

Get Professional Accounting and Tax Support in China

Accounting and tax compliance should not prevent you from growing your China operations. With the right local support, you can maintain accurate books, meet filing deadlines, understand your tax position and provide reliable reports to your overseas stakeholders.

Corporation China offers end-to-end accounting, tax and compliance services for foreign companies across China. From monthly bookkeeping and VAT management to annual audits, tax reconciliation, payroll and government reporting, our bilingual professionals provide practical support tailored to your business.

Start your China business journey with trusted local experts and join more than 1,500 clients who have partnered with Corporation China.

Note: Tax rates, filing deadlines and reporting requirements can change and may vary by city, entity type and business activity. This page is for general information and should be reviewed against current rules before publication or reliance.