Tax compliance services
in China.

Our reliable tax compliance services keep you ahead of your tax obligations. We are well experienced in working with all the relevant authorities, and we will complete your tax filing obligations on time, accurately report your assessable income, and help minimise your tax liabilities.

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Stay on top of your tax compliance.

On-time filings & returns

We take responsibility for preparing, calculating and filing your returns accurately and punctually, helping you to always stay compliant, and to avoid penalties for late submission.

Always up-to-date

Our tax team constantly monitors and adapts to any changes in tax regulations, so you do not have to – both locally in China and on the regional level for companies operating across Asia.

Strategic tax advisory

Alongside meeting your statutory tax obligations, we can offer strategic tax advice on optimising your tax spendings, decreasing the risk of double taxation, tax incentive systems and more.
Corporate & personal annual tax compliance

Our tax compliance services.

Corporate tax compliance.

  • Monthly value added tax (VAT) filing

    Each month we receive the expenses overview and related fapiao from you (duly ordered) by an agreed date. We then prepare and submit your monthly VAT returns, including verification of Input VAT receipts received by the company (maximum number of receipts per month) and prepare the monthly consolidated report.

    We issue VAT invoices (fapiao) per specific instructions (where required, through a visit to local tax authorities), and send to the company or to relevant customers (separate charges may apply). Where applicable we will advise on cost-efficient measures such as bundling all sales into one VAT invoice on a per client per month basis. We also assist in applying for tax rebates due when exporting.

    Monthly

  • Quarterly corporate income tax

    We specialise in preparing your quarterly corporate income tax (CIT) filing. We coordinate with the local tax office and act as your company’s tax liaison.

    Quarterly

  • Annual tax reconciliation, clearance and inspection

    We make all the preparations and arrange for the annual tax report and settlement. We also arrange for annual inspections with key statutory bodies (finance, AMR, tax, foreign exchange, and statistics).

    Annually

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Personal tax compliance.

  • Personal income tax

    We assist you to calculate, record and submit your monthly individual income tax (IIT) filing, and also take care of the annual tax filing and returns for expatriates.

    PRC domiciled individuals (more than one full year residence) are subject to IIT on income derived from services rendered both in China and outside China. The total income paid in or outside China for the month is apportioned for arriving at the taxable income for services rendered. Generally speaking, tax returns are filed by an employer (Permanent China Establishment) on a monthly basis; individual income tax is withheld by employers for direct payment to the tax authorities. Let our tax team take the strain of keeping you compliant.

    Monthly, Annually

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FAQ

Common questions.

What are the consequences for late payment of income tax?

Under the Law of the PRC for the Administration of tax levying (amended in June 2013) and the Measures for the Administration of Tax Registration (effective from February 2004), the taxpayer should register with the local tax authorities within 30 days of receiving its business license.

The payment of enterprise income tax on a monthly or quarterly basis should be determined by the taxation authority in accordance with actual situation and have the actual income tax amount settled within five months of the tax year ending. A late payment fine of 0.05% of the outstanding amount per day may be added to the taxpayer’s balance in addition to the back taxes owed. The clock will start ticking for the fine from the day the taxes were due.

How does the PRC tax authorities secure the payment of income tax?
In general, 22% for 2020 and 2021, and 20%

If a taxpayer fails to pay its tax on time, they should be given a deadline for squaring it up with the tax authorities. As an enterprise engaged in production, if the taxpayer fails to make the payment by the specified deadline, the tax authority may (subject to the approval by the head of a tax bureau at county level or above):

  • Order the taxpayer’s bank to withhold from the taxpayer’s accounts the amount due plus any surcharge for overdue payment
  • or
  • Seize and sell other assets belonging to the taxpayer equivalent to the value of the amount due plus any surcharge for overdue payment.

In addition, under Article 63 of the Tax Collection Law, the tax authorities can possibly impose a fine of up to five times the unpaid or underpaid amount.

Who is responsible for the penalty an expatriate employee incurs for late payment of income tax?

Normally, the FIE would be the withholding agent of the expatriate employee’s tax. This means it has the obligation to withhold and pay the income tax directly from the expatriate employee’s salary within the first fifteen days of each month. As the withholding agent, the FIE is liable if the tax has not been withheld or collected and would thus be lumbered with the late payment fine or other fines imposed. On the other hand, if the expatriate employee’s salary was paid by the parent company in Hong Kong, the expatriate employee would himself by responsible for the payment of tax on his salary. Either way, PRC tax authorities will go for the easy target when chasing the expatriate employee’s tax payment, which normally is the FIE, as they have a fixed presence and assets in China.

How the FIE is going to retrieve the tax payments from the expatriate employee is of no concern to the Chinese tax authorities!

Is it possible to obtain an extension for payment of income tax?
The expatriate employee is under an obligation to file a tax return and submit relevant tax information with the tax authorities. Alternatively, the FIE, as the withholding agent, is obliged to submit a report and pay the withheld taxes within the specified period. The tax authority may grant an extension to a taxpayer or withholding agent who is unable to file a tax return or report on time. An extension of tax payment may also be offered to a taxpayer with “special difficulty” in paying taxes. The extension can only last as long as three months.
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