After a newly established foreign invested enterprise (FIE) or Rep office is formally established, it's required to maintain proper accounting records in accordance with accounting standards in China and to report taxes on both a monthly (business tax and individual income tax) and quarterly (corporate income tax) basis. Late submissions will result in penalties and surcharges. FIEs must register their tax reporting method with their local tax authority. In addition, they must obtain an official invoice book that will allow them to send invoices to their clients within China and abroad.
WFOE (a major type of FIE) is required to maintain a complete accounting system and prepare financial statements. Three kinds of primary accounting books should be set up: journals, general ledger and subsidiary ledgers and their supporting documents. Computerized accounting records are also allowed. All supporting documents, accounting books and financial statements should be prepared. RMB is adopted as the basic bookkeeping currency. If a foreign currency is used, the financial statements must be converted into RMB at the year-end. In China, the accounting year is the calendar year which is January 1 to December 31. The accounting system is based on an accrual basis.
We understand it takes time for a newly established corporation to get its regular staff in place. While maintaining a stable and integrated financial system is extremely critical to a corporation, unstable personnel pose a challenge to it. Financial outsourcing will be an excellent choice. The cost of financial outsourcing service is only 20% to 30% of a full-time accountant's cost. Clients don't have to worry about personnel changes or financial data security. Moreover, our accountant will assist clients by negotiating with the local tax office on the proper tax reporting method and submit the quarterly and monthly tax reports on the client's behalf. Our experienced accountant will also help clients to establish a formal financial system which will greatly reduce legal risk. Our accountant is usually able to give clients useful suggestions to avoid taxes legally and to stay up-to-date on policy changes.
Financial Outsourcing Service
Our financial outsourcing service includes two parts which are accounting service and tax service.
Accounting Service
Due to rapidly evolving accounting system in China, it is a tough work for many foreign invested enterprises to keep pace with new policies and accounting standards which may come out without enough public notice. Our professional team is equipped with a thorough understanding of tax laws and an extensive practical experience, which enable us to assist our clients from the initial stage.
Tax Service
With frequently changing of tax regulations which are all in Chinese, tax compliance in China is usually a challenge for foreign invested enterprises. Having a reliable tax agent like RCS can save clients time and money, to release clients from endless contacting and negotiating with different tax departments.
By our close relationship with local tax authorities, we offer high quality tax service to bring clients with great potential value and direct economy value.