Our collection of resources based on what we have learned on the ground
Resources
Q&A
What is the Chinese equivalent of the Generally Accepted Accounting Principles o...
- May 2014
- Members Access
The Chinese Accounting Standards (CAS) framework is based on two standards: the Accounting Standards for Business Enterprises (ASBEs) and Accounting Standards for Small Business Enterprises (ASSBEs). For most enterprises established in China, ASBEs a...
Q&A
How should a foreign enterprise in China prepare corporate income tax (CIT) reco...
- May 2014
- Members Access
In China, CIT is paid on a monthly or quarterly basis in accordance with the figures shown in the accounting books of the company. Companies are required to file CIT returns within 15 days from the end of the month or quarter. However, due to discrep...
Q&A
When does the annual inspection in China take place for foreign-invested enterpr...
- May 2014
- Free Access
Each year from March to the end of June the annual inspection is jointly hosted by the following governmental departments: Ministry of Commerce (MOFCOM) Ministry of Finance (MoF) Administration of Industry and Commerce (AIC) State Administratio...
Q&A
Which types of enterprises are required to conduct record filing to the State Ta...
- May 2014
- Members Access
Individuals and institutions in China making outbound payments of more than US$ 50,000 are now required to conduct record filing with the in-charge local offices of the STB. Foreign investors reinvesting in China with an income of more than USD 50,00...
Q&A
What are the required documents representative offices (ROs) need to provide to ...
- May 2014
- Free Access
ROs are required to complete an AIC annual inspection between March 1 and June 30. Generally the following documents should be provided: Annual inspection report (the template will be distributed by AIC around March) Business registration certifi...
Q&A
What are the penalties if a representative office (RO) fails to provide its repo...
- May 2014
- Members Access
Penalties of RMB 10,000 to RMB 30,000 are applicable if the RO fails to provide its report to the AIC on time, and a RMB 20,000 to RMB 200,000 penalty applies if the report includes false information. Failure to comply may also lead to revocation of ...
Q&A
Do representative offices (ROs) need to complete a tax reconciliation report of ...
- May 2014
- Free Access
ROs are obliged to complete a tax reconciliation report of CIT as part of their annual compliance. The report should be submitted to its local tax bureau by May 31. Usually an audit report is not required for ROs paying CIT based on a deemed profit s...
Q&A
Why is successful audit & compliance crucial to a foreign-invested entity?s (FIE...
- May 2014
- Members Access
External audit is crucial to FIEs because it provides more accurate financial information, and a review through an outsider’s eye can more effectively dig out flaws in the company’s internal control and financial data. It is also a goo...
Q&A
Which R&D expenses are deductible from a company?s taxable income in China?
- May 2014
- Members Access
The following R&D expenses are deductible from a company’s taxable income in China: Basic pension, basic medical insurance, unemployment insurance, work-related injury insurance, maternity insurance and housing funds contributed by the e...
Q&A
What is the corporate income tax (CIT) treatment on cross-border secondment of e...
- May 2014
- Members Access
When a non-resident enterprise (NRE) dispatches personnel to China to provide services, and the NRE normally examines and assesses the performance of the dispatched personnel, and is wholly or partially responsible for their performance, the NRE will...
Q&A
What is an example of a mixed investment in China?
- May 2014
- Free Access
An example of mixed investments is when a trust company collects money from institutional investors and individuals, and provides loans and investments to various projects in exchange for the investees’ equity shares. The trust company usually ...
Q&A
When was the value-added tax (VAT) reform implemented in China?
- May 2014
- Free Access
On August 1, 2013, the VAT pilot reform was implemented nationwide, as formalized by the promulgation of the Notice Concerning the Nationwide Adoption of VAT in lieu of Business Tax Pilot Tax Collection Policy in the Transportation Industry and Ce...
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