China Accounting & Tax Filing

Our service delivers expert accounting and tax compliance, with a focus on accurate bookkeeping and clear financial reporting, adapting to regulatory shifts and market trends.

Simultaneously, the fast pace of tax reforms makes it often challenging for foreign companies to navigate in the Chinese tax landscape and stay up to date with the regulations. Our tax experts have a deep understanding of local tax regulations as well as in depth industry knowledge and experience.

At MSA, our accounting and tax services team take an integrated approach to help your finance departments manage tax accounting-related risks and create value for your organization by introducing optimized financial processes.  We alleviate administrative burden, ensure full compliance while providing our clients access to qualified China CPAs, licensed tax advisors and accountants.

Accounting Standards in China

The Accounting Regulatory Department of the Ministry of Finance in China is the authority charged with setting the accounting standards in China. Chinese accounting standards have maintained a high level of integration with international accounting standards, such as IFRS. However, there are a number of key differences that foreign investors should be aware of when doing business in China.

What Accounting System Does China Use?

Businesses who are setup and operating in China are required to remain in compliance with the Chinese Generally Accepted Accounting Principles (GAAP), officially known as the China Accounting Standards (CAS). The Framework of CAS has two existing standards for different types of business, namely:

  • Accounting Standards for Small Business Enterprises; and
  • Accounting Standards for Business Enterprises

China Accounting Services

Our full range of integrated accounting and tax compliance services include:

Accounting Services

Companies are required to maintain a reliable record of accounts and submit monthly financial statements according to Chinese accountings standards (PRC GAAP). Maintaining full compliance with the different accounting standards can pose a challenge and administrative burden for foreign businesses. To alleviate the administrative burden, we support with day-to-day booking activities, monthly accounting, preparation of financial reporting and provide advice on Chinese accounting policies. Moreover, we can customize our offering to fit all your requirements with additional services including banking & treasury, handling inward and outward international payments, custody of company chops, VAT invoicing and expense reimbursements.

Tax Filing

Companies are required to meet their tax obligations and complete monthly filings. With the ever-changing Chinese regulatory tax environment, a thorough understanding of the local tax regulations is essential to operate your business and minimize tax related non-compliance risks.

We support foreign businesses in the management of the whole process, from monthly tax filings, corporate income tax calculation, export VAT refunds, to annual income tax return and transfer pricing obligations.

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Companies operating in China must understand the core differences between the Chinese accounting standards (PRC GAAP) and international accepted accounting standards such as IFRS.

Our team consisting of qualified tax advisors and CPA support our clients to help them understand the accounting and finances of their Chinese subsidiary. These support services include converting Chinese financial statements according to group reporting standards as well as conversion of annual audit reports to bilingual reports and into the accounting standards applicable to your home country.

When your company is subject to auditing, we also provide a full range of audit support service to ensure compliance and minimize risks.

General Accounting Practices in China

Accounting practices refers to the process and system of recording the financial operations, on a day-to-day basis, of a business in China. While Chinese GAAP does maintain similar standards with the IFR, the differences need to be realized by international businesses, as they have an effect on the general accounting practices. To understand the differences between Chinese GAAP and IFRS requires the proper knowledge, expertise and experience with both.

Do You Need Accounting Services in China?

While Chinese accounting standards are in line with international standards, it is important that companies understand the differences and ensure no problems arise. Using an accounting partner who is familiar with local regulations and processes, like MSA, gives you the peace of mind you need to grow your operations in China.