There are a range of financial administrative tasks you need to consider, not the least of which is submitting your taxes regularly and efficiently.
Other issues you need to consider include:
- How do I repatriate profits or capital?
- What’s expected of me in my annual audit?
- I’ve heard there’s no need to provide paid in capital. Is this true?
For those interested, the answer to the last one is no, it’s not true. But the complete answer is far more complex.
Some of Our Services
ManageChina has over ten year’s experience in both setting up and running the compliance for many foreign companies choosing to base in China. Rather than deal with the day to day running of the things like tax submissions, fapiao issuance or payroll calculations, they outsource it to us.
Working in Xero or Quickbooks, we are able to quickly share details with clients and keep them regularly updated regardless of what they are looking at – local or international – accounts.
More than anything, you need to have a sounding board before you undertake significant transactions to get a proper perspective on just what your next move should be. Paying the right taxes and paying them on time should be part of this strategic reflection.
Perhaps the only country in the world with such a complex arrangement involving ‘official’ receipts, the fapiao presents its own unique challenges. Firstly, business in China – local and foreign alike – must only issue the official receipt/fapiao should they wish to claim the full amount as a tax deduction. To make matters even more complicated, the path to claiming a non-Chinese expense in your Chinese books is no easy matter. Many companies claim expenses from external entities only to have them declined by the Chinese authorities on the grounds they are transparently trying to avoid tax (ie. expense is not real – just a contrivance to move money off shore).
In most countries payroll is a standardised, simple calculation requiring little or no interpretation. In China, it is far from that. Each province, each city, each district has it’s own subtle interpretation of how staff payroll is calculated. Consider also that the calculations for local employees can be different to that of foreign employees and you have a layer of complexity that most likely doesn’t occur in a new market entrant’s own country.
And this is just standard payroll – what about the treatment of overtime or the way bonuses should be paid to pay the minimum amount of tax on the bonus that a company should?
Why Choose Us
- Long history of building relationships with a variety of district tax offices
- Constant review and reporting of changes in tax law that will effect clients directly
- Sit down quarterly reviews of the business
- Half yearly sit down planning sessions
- Monthly tailored reports for all clients.
What Client’s Say
ManageChina really helped us navigate through the taxation seas of China. We just didn’t have enough work to employ a full time person and so having ManageChina available to do this on a contract basis was integral to our success.
Really great effort. Particularly liked the way they reach out proactively each 3 months.