Accounting & Tax Services for China Operations
Ensure Compliance, Optimize Costs, and Gain Financial Clarity
Navigating China’s complex tax and accounting landscape requires local expertise. At GDL Global, we provide end-to-end financial management tailored to foreign-owned businesses, ensuring full compliance while maximizing your operational efficiency.
Our Core Services
1. Professional Accounting & Bookkeeping
Maintenance of daily transactions under Chinese Accounting Standards (CAS)
Bilingual (English/Chinese) monthly financial statements
Customized management reports for strategic decision-making
2. Comprehensive Tax Solutions
Tax Compliance:
Monthly VAT, CIT, and IIT filings
Annual corporate income tax reconciliation
Tax Advisory:
Transfer pricing documentation
Tax incentives application (High-Tech Enterprise, etc.)
Tax Optimization:
Legal profit repatriation strategies
Cross-border tax planning
3. Payroll & Social Insurance Management
Accurate salary processing (including IIT calculations)
Mandatory social security & housing fund contributions
Labor cost analysis and benchmarking
4. Audit & Annual Compliance
Statutory audit preparation (for WFOEs meeting thresholds)
Liaison with licensed Chinese audit firms
Annual Report submission to MOFCOM (for foreign-invested entities)
5. Specialized Industry Support
E-commerce (ICP license holders)
Manufacturing (VAT refunds for exporters)
Trading companies (customs duty optimization)
Why China’s Financial Compliance is Critical
⚠ Strict Deadlines: Late tax filings incur penalties (up to 5x owed tax).
⚠ Digital Surveillance: China’s Golden Tax System IV flags anomalies automatically.
⚠ Foreign Business Risks: Misclassified expenses or improper fapiao management may trigger audits.
How We Keep Your Business Protected
✔ Local CPAs: Mandarin-speaking experts familiar with regional tax bureaus.
✔ Tech-Enabled: Cloud accounting platforms for real-time financial tracking.
✔ Proactive Alerts: Reminders for all filing deadlines (VAT, CIT, IIT, etc.).
✔ Bilingual Support: Clear explanations of financial obligations in English.
Sample Workflow for New Clients
Onboarding: Document handover (bank statements, contracts, fapiaos).
Monthly: Bookkeeping → VAT/IIT filings → Financial reports.
Annual: CIT reconciliation → Audit (if required) → MOFCOM report.
Partner with confidence— Sign up to streamline your China accounting and tax operations.
Tax in China
In China, all companies, including the wholly foreign-owned enterprises, are required to comply with the Tax regulations. Therefore, you should first register the business's basic financial and operating info such as CFO verification and category, among others. When still at this, you need to note different taxes obligation. They include:
Corporate income tax: This is a tax on profits of 25%. However, if you are in the “encouraged sectors” you can enjoy lower corporate income taxes.
Transaction Tax: This tax is also known as turnover tax, which is 3-5% of the business sales.
Custom duties: These are charged on goods that are exported from or imported to China.
VAT (Value added tax): There are different tax rates in China: 3%, 6%, 9%, and 13% in terms of industries.
Individual income tax: This tax is imposed on dividends that are levied by company partners and staff salaries.
As we pointed out earlier, starting a business in China is a monumental task. Therefore, it is a great idea to have a professional holding your hand all the way. Note that working with an expert agency means that you have a partner to walk you through, even during the early days of company operations. So, do not wait any more; it is time to identify a great agency and take advantage of the high-potential Chinese market.
FAQ:
Q: How much corporate income tax reduction do WFOEs in “encouraged” sectors in China get?
A: If your company is in the “encouraged” sectors, the Chinese administration cuts the corporate income tax from 25% to 15%.