China Services

Quick answer: You can change your China accountant at any time, but the safest point is right after a month's tax filings are submitted, or after the annual audit and CIT reconciliation. A good handover transfers original accounting records, electronic tax bureau access, e-fapiao settings, bank tools and payroll data, and checks for open issues before the new firm files anything. Many foreign owners stay with an accountant they are unhappy with because they fear a missed fili

The fourth phase of China's Golden Tax System has been operational since 2022, and it represents a fundamentally different approach to tax administration than the phases that came before it. Where earlier phases focused on building a comprehensive national database of invoices, Phase Four is built to actively analyse that data, cross referencing it against contracts, payment records, banking information and, increasingly, logistics data. What is actually being matched In prac

Foreign investors who set up a WFOE with a straightforward plan to distribute profit each year are often surprised, the first time they actually try to pay a dividend, to learn that not all of the company's after tax profit is available for distribution. Chinese company law requires every foreign invested enterprise to set aside a portion of its profit into a statutory reserve fund before anything can be paid out to shareholders. How the calculation works The requirement is t