China Tax Compliance
Whether your business is located in China, Hong Kong or anywhere else in the world, China Tax Compliance, according to local regulations, can be a painful task for many organisations.
It is not simply a case of just transferring solutions that have been used in the West to promote tax compliance in China. Instead, it is necessary to keep in mind the best way for a company to ensure tax compliance will vary depending on the specific region of their operation.
Making sure your company is fully compliant with tax requirements will not only allow your company to operate efficiently, knowing that future costs are placed upon you will be paid, but also will allow you to foster a strong positive business ethos throughout all your operations, both for internal and external observation.
For many Foreign Invested Enterprises (FIEs), tax compliance in China is a challenge. China Accounting Standards (CAS) will be different compared to their domestic country (GAAP & IFRS) and registration to the local tax bureau and other legal taxation bureaus might seem complicated. Every business operating in Mainland China is required to prepare their annual audit according to China Accounting Standards. Furthermore, the annual audit has to be in Renminbi (¥), the local Chinese currency. While using the CAS, there are different ways to calculate the impairment of assets, inventory cost & reversal, capitalisation of development costs, depreciation expenses, interest rates, dividends and asset valuation. The different methods for tax compliance can have an impact on your business ratios, the level of profitability and level of taxation.
To make an enquiry, please contact us at firstname.lastname@example.org. For information about the Tax Compliance Services LehmanBrown can offer, please see the relevant webpages.