Let our team of certified accountants and professionals at Shanghai Silk Road assist you with your monthly and annual filings, tax rebates and more.
Annual Financial Reports
Can I do my own accounting?
While in most countries it is allowed and perfectly fine to take care of the accounting of your company and do the filings yourself, in China it’s a bit different – only licensed accountants are allowed to file for companies, therefore, having a certified licensed accountant is mandatory for all companies.
Do I have to send any documents to the accountant?
Yes, in the beginning of each month, it’s required to send the following documents to your company’s accountant in China electronically: 1) Company bank statements, 2) Copies of contracts, 3) Invoices, 4) Salary information and 5) Other relevant information for monthly tax filings (accountant will ask if anything extra is required)
Can you help with VAT refund in China?
Yes, our accountant can help to process VAT refund in China. However, this service is not a part of our standard accounting service and is not automatically included in the package. The reason is, service fee for VAT refund depends on the VAT refund amount and number of contracts. Please speak to us for more information.
Can I change the accountant later?
Yes, if you find an accountant in China and would like to transfer your company to them, you can speak to us and we will assist with the process.
Can I hire a foreign accountant?
Mainland China, foreigners cannot still sit for an accounting license exam, therefore, you have to make sure the accountant you are hiring in China has all the necessary license and permits to practice accounting. Our accountants are all licensed in Mainland China.
Will the account be my employee?
Yes and no. Yes, if you really hire a full or part-time accountant and pay for their social security as your employee. No, if you hire an accountant on a contract basis as a service provider – most accountants have their own accounting firms, so they can bill your company for the service they provide. And some accountants act on their own, they also can bill you as freelancers for the services they provide. So it really depends on your preferences. If you use our accounting services, we will bill you for the accounting service separately, i.e. our accountants will not be your employees, so you don’t have to worry about their social security payments.
How does VAT refund work in China?
In order to claim VAT back, companies, which are registered as General Taxpayers (Small Scale Taxpayers cannot apply), should provide a set of documents to the tax department in in the place of registration (for e.g. Pudong district of Shanghai etc.). One of the required documents is a special VAT invoice (增值税发票) given by suppliers, without this invoice it is impossible to apply for VAT refund. NOTE: VAT refund service is not automatically included in the accounting service package. Please speak to us for more details.
How much Tax will I and my company pay in China?
Although the rate of corporate tax in China is set as 25%, the actual rate depends on many factors like net profit, tax threshold, company’s taxpayer status (General Taxpayer vs Small Scale Taxpayer), government subsidies etc. Also the place of registration matters too when calculating corporate taxes. Individual income tax also depends on the time payment, amount of salary, tax payer status, and other factors, therefore, it’s very hard to give an exact rate which applies to all situations, companies and individuals. Please speak to us for more details.
what are the filing requirements in China?
There are monthly and annual tax filing requirements in China. Even if the company is not generating any income, it is still required to do 0 income filings every month.
Will the accountant keep my company documents?
No, but the accountant is going to keep your invoice stamp (an oval stamp of the company) and tax u-key (special USB given by the tax department), as these are necessary to perform their accounting duties.
Can I hire a Hong Kong based accountant?
The important thing is not the location, but the license of your accountant. Filings can be done online, but the company accountant must be licensed to practice accounting in Mainland China (Hong Kong and Macao are different jurisdictions, and not part of Mainland China)
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Our Financial Services:
China company formation
We take care of the company formation process in China A to Z. We can register almost any types of companies in Shanghai and some other regions of China.
Our professional accountants can help you with the VAT refund process in China.
In case you decide to receive an investment into your company and need an investment report afterwards, our accountants can assist with with the process. They will work with your bank in China and prepare an investment report, which can be used for different purposes.