All foreign invested enterprises (FIEs) registered in China shall complete annual compliance procedures as required by laws and regulations of the PRC. It is crucial to be aware of the relevant deadlines as failure to complete these procedures on time may result in fines and penalties.
Annual Reporting
According to the Provisional Regulations on Enterprise Information Disclosure of the PRC, an enterprise shall submit an annual report for the previous year to the registry office during the period from January 1 to June 30 each year, which shall be disclosed to the public.
If an enterprise fails to submit the annual report on time, it will be listed as abnormal and shall be disclosed to the public in accordance with the law. If an enterprise has been listed as abnormal for more than 3 years, it will be listed as an enterprise that has seriously violated the law and will face joint punishments from government departments. The legal representative of the enterprise cannot be appointed as the legal representative or responsible person of any other enterprise for 3 years.
Statutory Audit
According to the Company Law of the PRC, a one-person limited liability company shall prepare a financial report by the end of every fiscal year and have the report audited by a certified public accounting firm registered in China. The term "one-person limited liability company" refers to a limited liability company with only one natural person shareholder or legal person shareholder. A non-one-person limited liability company, that is, a company with two or more shareholders, is exempt from audit.
Annual Enterprise Income Tax Reconciliation
All China enterprises shall file an annual enterprise income tax reconciliation return for the previous tax year during the period from January 1 to May 31 as required by the laws and regulations of the PRC.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
Intangible assets refer to identifiable non-monetary assets owned or controlled by an enterprise that have no physical form, usually including patent rights, non-patented technologies, trademark rights, copyrights, concessions, land use rights, etc. The following is a brief introduction to several tax-related issues of mixed intangible assets.
Individual industrial commercial defines as individuals or families who are involved in industrial and commercial activities within lawful areas, registered and recorded as law. Individuals attends in industrial and commercial activities should pay individual income tax, Actual and reasonable payment for employees as wages and salaries, allowing for deduction. Employers’ pre-tax deduction for salaries would not be allowed.
The taxpayers of Enterprise Income Tax include any enterprise and other organizations (not applicable to sole proprietorships and partnerships) which have income derived from China. Including resident enterprises and non-resident enterprises.Resident enterprises: enterprises which are established in China according to Chinese law or established in accordance with laws of foreign countries (regions) but have actual management institutions in China.
An enterprise needs to pay enterprise income tax in advance on a quarterly basis for its business and need to declare and paid the yearly income tax within five months after the completion of a tax year and carry out "more refund and less paid", that is, the tax settlement and payment.
