When to Go for Tax Advisory and Compliance Services in China

Running a company in China can be very profitable. As an entrepreneur, the jurisdiction offers a large market of more than 1.4 billion people and has a very supportive administration. The Chinese administration has adopted pro-business financial reforms that are helping to steadily grow the economy. It is also opening more areas to foreign enterprises, simplifying the process of company registration, and signing bilateral trade agreements. Once in China, growing your business becomes a lot easier, but there is one thing that you must do: comply with all tax requirements set out by the government. 

The tax system in China is complex because it comprises different taxes and related policies that keep changing. Again, tax rates for different regions and products vary. If you have a company in China, it is important to get the taxes right because non-compliance can come with hefty penalties. Your license can also be canceled. The best way to get it right is using tax advisory and compliance services in China. Keep reading as we take a closer look to demonstrate when you should go for help from an expert. 

Starting Your Company in China 

When starting your company in China, it is important to understand all matters on tax compliance. You cannot afford to get it wrong when making the first step. Bringing on board tax advisory and compliance services in China makes it easy to determine your obligations. At this point, the advisory also comes in handy to help you make crucial decisions, such as: 

  • Where to base your company because different regions have varying tax rates. For example, China’s standard corporate tax rate is 25%, but companies located in free trade zones enjoy lower rates. 
  • The business of choice also determines if you will enjoy lower rates. Companies dealing with advanced technology, such as app and web development, can enjoy as low as 15% in corporate taxes. 

Why pay more when there is a chance to make some savings on taxes? Let an agency of experts assist when starting a business in China.

Scaling Operations to Reach More Regions in China and the Entire Asia-Pacific 

The primary target for most companies coming to China is growing rapidly to optimize profits. To become the multinational of their dreams, entrepreneurs expand their brands to different regions in China and then move to the neighboring countries. As you scale operations, the process of compliance becomes even more challenging. For example, expanding your company from China to Thailand and India means you have to comply with new tax laws of those nations. 

By seeking the assistance of tax advisory and compliance services in China, it means that you can focus on the core of your business, such as product development and marketing, as professionals deal with compliance. They are able to follow all the existing and new policies on tax matters in the countries of interest to guarantee compliance. 

When Preparing Financial Reports and Filing Tax Returns 

At the end of every financial year, you are required to prepare financial reports and file audited accounts with the local tax bureau. As you prepare the financial records, this is a time of reflection, to help your company identify gaps, challenges, and opportunities. Working with tax advisory and compliance services in China makes it possible to rethink your approaches so that the subsequent financial year becomes more successful. For example, how can you take advantage of the current policies in China to enjoy lower taxes? 

To be successful when doing business in China, you must get it right on taxes. So, do not hesitate to bring on board the best professionals. With experts in tax advisory and compliance services in China, you can never go wrong on tax matters. The professionals can also help you with other executive functions, such as accounting, payroll, and due diligence.