SunFaith - your very own compliance audit China guide for hassle free auditing and taxation in China

For any Foreign Investment Enterprise (FIE) or Foreign Enterprise (FE) in China, it is wise to seek help of a professional compliance audit China service provider for hassle free operations. In the post WTO era, the taxation and audit system in China has been changing fast and different taxation procedures are followed for the FIEs and FEs. So, for new or existing foreign companies in China it is safe and effective to hire a firm which can guide them with compliance audit China. At SunFaith, we provide effective solutions to our foreign clients that help them comply with the Chinese taxation and accounting regulations. Before we start discussing about the services of SunFaith, let us present you with some of the key facts about the Chinese taxation system.

Presently there are 14 different types of taxes that are applicable to the Foreign Investment Enterprises (FIE), Foreign Enterprises (FE) and/or foreigners. In China, 'State Tax Bureau' and 'Local Tax Bureau' are responsible for collection of the taxes and a company is required to register with both the state and local tax authorities. 'State Tax Bureau' collects the enterprise income tax, value added tax and withholding tax etc. 'Local Tax Bureau' is responsible for the business tax, individual income tax etc.

Enterprise Income Tax

• This tax is applicable to FIEs and FEs.
• The standard rate for enterprise income tax is 30%. In addition to that 3% local tax is payable to the local government.
• This tax is levied annually.
• Provisional payments are due 15 days after the end of each quarter.
• Final settlement of the emprise income tax needs to be done within 5 months of the year end.

Value Added Tax

• The normal rate of VAT is 17%. For 'necessities' like agricultural, utilities, it is 13%.
• The tax is levied on monthly basis and needs to be paid by the 10 th day of the following month.

Business Tax

• This tax is applicable for the representative offices of the Foreign Enterprises.
• The rate of business tax varies from 3 to 20% depending on the business.

Individual Income Tax

• Employer is responsible for making the payments of IIT to the tax office.
• In case of default, the employer is subject to a fine ranging from 50% to 300% of the unpaid or underpaid tax.

From the above discussions, you must have got a fair idea of the fact that it is difficult for foreign companies to comply with these complex rules and practices. We at SunFaith have expert professionals, who will analyze the situation for you and effectively guide you in the process. We have huge experience in business development consultation, wide spread network in China and close associations with various government bodies. Therefore, we are the best people to help you with our compliance audit China solutions. Moreover, we provide conventional business solutions like intellectual property protection, market research and risk management. So, if you want to efficiently manage your audit and accounts in China, hire SunFaith and concentrate on the core areas of your business.

Before you pay the fine get protected with the compliance audit
China solutions of SunFaith.

[All figures are subjected to change, please contact
SunFaith for latest figures.]

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