Accounting & Tax Compliance in China
China is an ever-changing market; what is true today will may not be true tomorrow. Whether your Chinese operation is successful and on track, or whether you are facing some tough choices to get back on course, decision-making is never easy for Foreign Invested Enterprises (FIEs). You and your business are always under pressure from rising costs, decreasing margins, sudden regulatory changes or other unforeseen market factors.
Here are some of the questions that an FIE may be asking:
These strategic questions require accurate, consistent and timely financial data. Sovereign China’s Accounting and Tax Compliance expertise will ensure that accurate and reliable information is maintained for your business, enabling you to make informed decisions promptly. This will allow you to focus on driving the business forward and meet new challenges.
FIEs also have obligations to the Chinese tax bureau and compliance is essential. When preparingfinancial reports, all FIEs are required to follow the Chinese Generally Accepted Accounting Principles (GAAP), also known as Chinese Accounting Standards (CAS), which differ from both the US GAAP and International Financial Reporting Standards (IFRS). Often this requires FIEs to keep two sets of books: one set of managerial accounts conforming to the company’s internal practices and one official set conforming to CAS.
Operating a business in China requires more than just internal controls and detailed attention to financial management. The appointed tax official will have considerable discretion when it comes to interpreting the regulations governing your
company’s obligations. Sovereign China will assist youto maintain a good working relationship with local tax authorities by providing a dedicated team of licensed, bilingual accountants, who are experienced in meeting both international standards and local requirements.
Our key accounting and tax compliance services include:
From a full back-office outsourcing solution to standard tax and regulatory compliance assistance, Sovereign China provides FIEs with the resources and expertiserequired to make the Chinese marketless daunting and more conducive to long-term success.
Contact us to find out how your accounting can become an active driver for profitability and compliance and not just a passive administrative exercise.
Explore Corporate Services in China
Please contact us if you have any questions or queries and your local representative will be in touch with you as soon as possible.
