China Business Annual Return
Update time:2018-6-6 14:03:15 source:Tannet Views:922
China business annual return refers to one summary, based on the company’s latest basic information. It is required for every company registered in China, as basic maintenance. So it is quite necessary for you to have a general idea on this issue in advance.
1. Annual Audit Report
Annual audit report, generally, is required to complete before June 1 of every year in China. The process will take about two months. To make the report more accurate and objective, the audit report may be issued from a thirty party other than the party responsible for accounting.
2. Corporate Income Tax (CIT) Reconciliation
In China, CIT is paid on a monthly or quarterly basis in accordance with the figures shown in the accounting books of the company; companies are required to file CIT returns within 15 days from the end of the month or quarter. As such, the State Administration of Taxation (SAT) requires companies to submit an Annual CIT Reconciliation Report before June 1 if all tax liabilities have been met, and whether the company needs to pay supplementary tax, or apply for a tax reimbursement. Generally, the Annual CIT Reconciliation Report must include adjustment sheets to bridge the discrepancies between tax laws and accounting standards.
3. Annual Inspection
FIEs (Foreign Invested Enterprise) in China are required to undergo an annual cooperative inspection jointly conducted by several governmental departments of the State Council before end of June. These inspections are designed to ensure that FIEs conducting businesses in China are fulfilling the legal commitments they make to each of the departments.
The relevant documents required for the annual inspection are:
•Annual inspection report;
•Audit report issued by external accounting firm;
•Financial statements of the previous year;
•Certificate of approval for FIEs;
•Business license;
•Capital verification report;
•Industry-specific license or permit;
•Other forms or documentation required by relevant government departments.
4. Annual Foreign Currency Inspection
FIEs that conduct frequent transactions with others in foreign currency should prepare an Annual Foreign Currency Inspection Report as well.
5. Profit Repatriation
Companies distributing profits should complete the reconciliation procedure in advance to leave sufficient time for shareholder companies to prepare for CIT compliance before the May 31 deadline. The submission of additional documents may also be required.
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