Jenny Liao and Ivy Gu Discuss China’s New Accounting Standards & Individual Income Tax Preparation in 2021

On Feb 25 2021, Dezan Shira & Associates had the opportunity to work with DUSA (European Business Association) to host a workshop in Suzhou on the new accounting standards & Individual Income Tax (IIT) preparation for 2021.

At the beginning of this year, several new accounting standards for non-listed companies came into effect under the Chinese Accounting Standards for Enterprises (CAS).  For businesses subject to the new standards, it is vital for them to understand the changes and the impact the new standards will have on their accounting practices this year.

IIT filing for expatriates will also undergo significant changes in the coming year. With three major allowances for expats coming to an end on January 1, 2022, there will be key impacts for expats and businesses in China.

To help businesses and individuals better understand the changes under both the new accounting standards and new IIT allowances, Ivy Gu, Shanghai Audit Manager, and Jenny Liao, Shanghai Corporate Accounting Services Senior Manager, teamed up with Orbis Consulting’s Renee Wu to host a comprehensive workshop.

Ivy guided the attendees through an overview of the new accounting standards and their effects on accounting practices regarding revenue, leases, and financial instruments.  Renee from Orbis then discussed how the new standards will affect work through SAP. The workshop ended with Jenny’s presentation on the new developments in IIT preparation and accounting digitalization. There was particular interest around IIT preparation from the audience as the upcoming changes will result in cuts to take home pay for foreigners and increased labor costs for employers.

Questions about how the new accounting standards will impact your accounting practices or about the upcoming changes to IIT preparation in the next year?  Our team can help. Contact our experts today to schedule a call.

Further Resources on Chinese Accounting Standards and IIT

For further resources on China’s new accounting standards and IIT preparation, you can visit our website, China Briefing. where you can find articles such as:

• Chinese Accounting Standards for Business Enterprises: Prepare for Changes in 2021
• Annual Audit and Compliance in China: Prepare for 2021
• China Individual Income Tax and Social Insurance Calculator

You can also visit our publication store, Asia Briefing, which houses in-depth business guides and magazines for multiple regions in Asia.