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Accounting &
Tax Compliance

Outsourced accounting, certified CAS/ASBE bookkeeping, multi-city payroll, and tax filings for Foreign-Invested Enterprises (FIEs). We act as your local finance team under a single accountable compliance framework.

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Operating a Foreign-Invested Enterprise (FIE) in Mainland China requires strict adherence to localized accounting frameworks, monthly tax filing frequencies, and rigorous invoice governance.

Unlike many international markets, all registered corporate entities in China must maintain their primary accounting ledgers in accordance with Chinese Accounting Standards (CAS), also known as the Accounting Standards for Business Enterprises (ASBE). Our premium outsourced accounting, tax compliance, and payroll advisory services function as your localized finance department, guaranteeing absolute regulatory alignment, real-time financial reporting, and seamless profit repatriation.

China Accounting & Compliance Services

We manage your complete monthly, quarterly, and annual financial and tax obligations in China under a single, accountable B2B service agreement:

CAS/ASBE Bookkeeping Recording all daily corporate transactions, expenses, bank reconciliations, and asset ledgers in strict compliance with Chinese Accounting Standards using localized ERP software.
VAT & CIT Filings Handling monthly/quarterly Value-Added Tax (VAT) submissions and quarterly Corporate Income Tax (CIT) prepayment returns to the State Taxation Administration (STA).
e-Fapiao Management Administering receipt, verification, and issuance of official tax invoices under the new Golden Tax Phase IV (金税四期) Fully Digitized Electronic Fapiao (数电发票) network.
IIT & Payroll Processing Calculating monthly gross-to-net salaries, filing Individual Income Tax (IIT) via the official ITS portal, and processing payroll distributions.
Social Insurances & Housing Fund Managing statutory employer obligations, including monthly contributions to the Five Social Insurances (社保) and the Housing Fund (公积金), optimized for municipal bases.
Annual Statutory Compliance Preparing audit-ready trials, coordinating the annual statutory audit with local CPA partners, filing the CIT reconciliation, and submitting the Joint Annual Report.

HQ-Aligned Financial Reporting

While local tax bureaus enforce CAS, international parent companies require standard visibility. We bridge this reporting gap by providing multi-GAAP financial packages:

GAAP/IFRS Mapping & Reconciliation Mapping your local Chinese CAS chart of accounts and translating trial balances into standard IFRS or US GAAP financial packages on a monthly basis.
Multi-Currency HQ Consolidation Converting accounts from local RMB to your parent currency (USD, EUR, etc.) utilizing SAFE-compliant transaction rates, facilitating corporate group consolidation.
HQ-Bespoke Management Reporting Compiling monthly custom reporting packages, variance analyses, corporate cash flow forecasts, and KPI tracking dashboards formatted for overseas boards.

Critical Financial Challenges in China

Navigating the Chinese financial landscape introduces unique administrative mechanisms that frequently create friction for international management teams:

e-Fapiao & Invoicing Governance

In China, business transactions are not valid for tax deductions without an official Fapiao generated via Golden Tax IV. Managing electronic e-Fapiaos, verifying vendor authenticity, and tracking expense limits requires active, expert oversight to avoid tax rejections.

Complex Payroll Benefits Systems

Chinese statutory employer benefits (social insurances + housing funds) typical add a mandatory 30% to 40% overhead on top of employees' gross salaries. These contribution ceilings, bases, and rates shift annually and differ strictly across municipal lines.

Strict Foreign Exchange Controls

The State Administration of Foreign Exchange (SAFE) monitors all outbound capital flows. Repatriating corporate profits, paying service invoices from parent groups, or injecting capital requires exact tax clearances and complex contract verification packages.

Mandatory Statutory Audit Cycle

All FIEs must complete an annual statutory CPA audit, file a corporate tax reconciliation (汇算清缴), and allocate 10% of after-tax profits to a Statutory Reserve Fund before distributing any dividends or repatriating profits.

Why Outsource Accounting in China?

Hiring an experienced, bilingual Senior Accountant in cities like Shanghai or Beijing can demand upwards of RMB 20,000 to 30,000 per month in base salary alone, plus mandatory social benefits. Partnering with a specialized outsourced advisory team provides strategic advantages:

Reduced Compliance Risk

Our local CPAs and tax advisors track STA updates, e-Fapiao regulations, and municipal benefits changes in real-time, eliminating penalties and audit risks.

Access to Local Expertise

Get immediate support for tax treaty benefit applications, R&D tax deductions (super deductions), and complex SAFE capital repatriation procedures.

Multi-City Operational Support

If your business expands into multiple cities (e.g. Shanghai WFOE with a Shenzhen branch), we manage all localized tax filings and social benefit structures under a single firm.

Frequently Asked Questions

No. Under Chinese law, all corporate entities registered in Mainland China (including WFOEs, JVs, and Partnerships) must legally maintain their statutory ledger, charts of accounts, and financial books in accordance with Chinese Accounting Standards (CAS) using local functional currency (RMB). We support international groups by mapping and translating these local CAS reports into US GAAP or IFRS packages on a monthly basis.

The active Golden Tax Phase IV (金税四期) system replaces legacy tax disks and physical paper tax invoices with Fully Digitized Electronic Fapiao (数电发票 - e-Fapiao). Invoices are issued, recorded, and verified in real-time through the national tax network. This eliminates manual invoicing delays, but requires precise, digital fapiao reconciliations to prevent STA audit alerts and rejected tax-deductible expenses.

Unlike many Western markets, China requires highly frequent ongoing tax filings. Corporate entities must file VAT returns and Individual Income Tax (IIT) payroll filings on a monthly basis (by the 15th of the following month). Corporate Income Tax (CIT) is filed quarterly as a prepayment, and the final annual CIT reconciliation (汇算清缴) must be submitted by May 31.

The annual compliance process is a strict 4-step sequence: (1) local CPA audit of the CAS accounts; (2) annual CIT reconciliation and tax adjustment; (3) Joint Annual Report filing; and (4) dividend repatriation. To repatriate profits, a WFOE must offset all historical losses, pay CIT, allocate at least 10% of after-tax profits to a Statutory Reserve Fund (until it reaches 50% of registered capital), obtain a tax clearance certificate, and submit the payout package to the foreign exchange bank.

International ERPs are not natively compliant with CAS/ASBE or the Chinese tax invoicing system out-of-the-box. However, you can utilize Xero, QuickBooks, or NetSuite for your internal group management if you integrate them with localized synchronization middleware or API bridges. Our team manages this integration, matching local CAS ledger recordings directly to your international ERP profiles.

Ready to Outsource Your Accounting and Tax Filing?

Schedule a consultation with our China tax and financial advisors to design a custom compliance and bookkeeping package.

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Accounting & Tax Compliance