There are significant differences between China tax regulation and the European and American tax systems for Foreign Invested Enterprises (FIEs).

When foreign investors and companies first start their business in China, they should have knowledge of the various issues like:

1. Import and Export customs duties, value-added tax, consumption tax, etc..

2. Business tax, value added tax and enterprise income tax of WFOEs, JVs and ROs.

3. Calculation, declaration, refund and exemption of individual income tax.

4. The principles of bilateral taxation treaties between China and other countries.

The administration system of taxation in China has its own characteristics, most of these taxes are payable monthly. H & Trust can help its clients deal with the rules and regulations of Chinese taxation and the management of taxation to maximize profits.


1   What kind of invoice will be accepted by china tax authority?

     Official fapiaos are acceptable and a legal receipt that serves as proof of purchase for goods and services.

2   Does china follow the International accounting standard?

      No, China has own accounting standard for different business field.

3   How long I need to keep the accounting Books and Records?

      Books and records have to be maintained in accordance with the relevant regulations. It is a requirement under the Enterprise Income Tax Law for FIEs to retain their accounting records for at least 15 years.

4   What is the Reporting Currency in China?

     RMB is the base currency for ledgers and financial reports. For enterprises using currencies other than RMB in their business transactions, one of these foreign currencies can be used as the bookkeeping base currency. However, the financial reports are required to be shown in RMB which is translated from such foreign currency.

5 Can company claim input VAT?

   If you are a general tax payer and got input VAT fapiaos dated within 1 years.

6 How long the company need to file the VAT tax return?

   Monthly VAT tax filling for General tax payer.

   Quarterly VAT tax filling for small-scale tax payer.

7 What is the period of Financial Year in China for CIT tax return?

    From 1st Jan to 31st Dec each year.

8 When the company need to file CIT tax return?

    From 1st Jan to 31st May of each year to file the previous year's CIT tax return.