China Accounting & Tax Compliance Services for Foreign Companies
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In recent years, global tax reforms have been frequent, leading to increasingly complex and dynamic tax environments worldwide. Regardless of size or industry, businesses face the dual challenge of maintaining strict compliance while minimizing tax liabilities.
Qihui’s expert team, with deep expertise in taxation, stays abreast of the latest regulatory updates and practical requirements. We deliver comprehensive one-stop tax solutions to support businesses in making efficient tax decisions, creating lasting value, and achieving strategic objectives.
For accounting services, leveraging cutting-edge image recognition and AI technology developed collaboratively by experts with over 20 years of experience in finance, Qihui provides fully automated, paperless bookkeeping and filing solutions tailored to meet diverse business needs.
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Our Core Advantages
Empowered by Smart Accounting & Tax Tools
AI-powered Fapiao recognition with over 95% accuracy;Automated cross-border payment matching.Multi-language tax reports generated with a single click.
End-to-End Service Coverage
From business registration to tax compliance audits, we provide full-process management for enterprises, helping clients make full and lawful use of the tax incentives available to them.
Policy Direct Access Services
Work permits for eligible foreign talent issued in as fast as 48 hours under free-trade-zone pilot policies. Preferential corporate income tax rates as low as 15% for qualified enterprises (e.g., certified high-tech enterprises and encouraged industries in designated regions). Support for cross-border tax payments using digital RMB.
Accounting & Tax Services
- · Bookkeeping & Chinese Financial Statements
- · Monthly VAT and Surtax Filing
- · Monthly Statistical Reporting
- · Quarterly Corporate Income Tax (CIT) Prepayment
- · Quarterly Stamp Duty Filing
- · Agency Bookkeeping and Tax Filing
- · Digital Archiving of Original Vouchers
- · Bank Document Organization
- · AI-Generated Accounting Entries
- · Financial Statement Compilation
- · Financial Statement Archiving
- · VAT Calculation & Documentation
- · VAT Credit Certification
- · Business-Tax-Related Calculations & Archiving
- · Stamp Duty Calculation and Archiving
- · Corporate Income Tax (CIT) Calculation
- · Annual CIT Final Settlement
Cashier & Invoicing Services
- · Cash Management Services
- · Compliance Review of Employee Reimbursements & Supplier Payments
- · Online Payment Processing
- · Accounts Payable (AP) Management Support
- · Cross-Check E-Invoice Copies with Originals
- · Prepare Exception Reports for Unreceived Invoices
- · Issue VAT Invoices
- · Issue VAT Credit Notes
- · Invoicing System Maintenance
Accounting & tax compliance
China tax rates, filing deadlines and what outsourced accounting actually covers
China's new VAT Law took effect on 1 January 2026, consolidating the rules that had governed VAT for over 30 years while keeping the main rate structure of 13% / 9% / 6%. Small-scale taxpayers (annual sales up to RMB 5 million) continue to enjoy a reduced 1% levy rate, and small low-profit enterprises pay an effective 5% corporate income tax on profit up to RMB 3 million — both incentives currently run through 31 December 2027.
Compliance obligations begin the month your entity becomes operational, not when revenue starts: individual income tax and VAT are filed monthly, corporate income tax is prepaid quarterly and reconciled annually by 31 May, and the SAMR annual report is due by 30 June. Statutory books must be kept in Chinese under Chinese Accounting Standards (CAS), and in most regions foreign-invested enterprises need an annual statutory audit — which is also a precondition for repatriating dividends.
Our team handles the full cycle under CAS with bilingual management reporting, so your headquarters sees the numbers in the format it expects while the local filings stay fully compliant.
China business tax rates at a glance (2026)
| Tax | Rate | Applies to / conditions |
|---|---|---|
| Corporate Income Tax (CIT) | 25% | Standard rate for all resident enterprises |
| CIT — preferential | 15% | Certified High & New Technology Enterprises; encouraged industries in designated regions (e.g., Hainan Free Trade Port, western China) |
| CIT — small low-profit enterprises | 5% effective | Taxable income ≤ RMB 3M, ≤ 300 employees, ≤ RMB 50M assets; valid through 31 Dec 2027 |
| VAT — general taxpayers | 13% / 9% / 6% | 13% goods; 9% transport, construction, basic services; 6% modern and financial services (new VAT Law, effective 1 Jan 2026) |
| VAT — small-scale taxpayers | 1% levy rate | Annual sales ≤ RMB 5M; monthly sales ≤ RMB 100k exempt; valid through 31 Dec 2027 |
| Surtaxes on VAT | ~12% of VAT paid | Urban maintenance & construction 7% + education surcharges 3% + 2% |
| Dividend withholding tax | 10% | On profit repatriated to the foreign parent; tax treaties may reduce to 5% |
| Individual Income Tax | 3%–45% progressive | Employment income, withheld monthly by the employer |
Rates and timelines reflect national rules as of July 2026; time-limited incentives show their sunset dates. Local practice varies by city and industry — always confirm with the competent authority or ask us for a current assessment.
The FIE compliance calendar
Monthly — by the 15th every month
Individual income tax withholding for all employees; VAT and surtaxes for general taxpayers; payroll, social insurance and housing fund payments.
Quarterly — within 15 days of quarter end 4× per year
Corporate income tax prepayment; VAT filing for small-scale taxpayers.
Annual CIT reconciliation — by 31 May annual
Full-year corporate income tax settlement for the previous year, reconciling quarterly prepayments against audited results.
Annual report season — 1 January to 30 June annual
SAMR annual report plus the joint multi-department annual reporting for foreign-invested enterprises, including the foreign-exchange stock equity registration.
Statutory annual audit Q1–Q2
An audit by a licensed Chinese CPA firm is expected for FIEs in most regions and is a precondition for distributing and repatriating dividends.
Missing a deadline triggers a late-payment surcharge of 0.05% per day plus penalties, and downgrades the company's tax credit rating — which in turn restricts fapiao quotas and bank services.
Accounting & tax FAQ
When must we register as a general VAT taxpayer?
Registration becomes mandatory once taxable sales exceed RMB 5 million in any rolling 12-month period. Voluntary registration below the threshold is possible and often sensible when your customers need 13%/9%/6% special fapiao or you have significant input VAT to credit.
What is a fapiao and why does it matter so much?
A fapiao is the official tax-registered invoice — the only legal proof of a transaction for expense deduction and revenue recognition. China has completed the transition to fully digitalised e-fapiao, and your fapiao quota depends on your tax credit rating, which makes clean filing history commercially valuable.
Do our books have to be kept in Chinese?
Yes — statutory accounting records must be maintained in Chinese (bilingual is permitted) and follow Chinese Accounting Standards. We keep the statutory books compliant and deliver English management reports mapped to your group's chart of accounts.
Is an annual audit mandatory for a foreign-invested company?
In most regions an annual statutory audit by a licensed Chinese CPA firm is expected for FIEs in practice, and it is required before profits can be distributed and repatriated. Group auditors also typically rely on it for consolidation.
How do we get profit out of China?
After the annual audit and CIT settlement, dividends can be remitted through the bank with the audit report and tax clearance documents. A 10% withholding tax applies, reduced to 5% under many tax treaties (subject to beneficial-ownership requirements).
What happens if we miss a filing deadline?
Late filings incur a surcharge of 0.05% of unpaid tax per day plus administrative penalties, and repeated lapses downgrade your tax credit rating — which restricts fapiao quotas, invalidates certain incentives and complicates banking. Catch-up filing is almost always cheaper than the consequences.
Can a small WFOE actually use the 1% VAT and 5% CIT incentives?
Yes, if it qualifies: the 1% levy rate applies to small-scale taxpayers (annual sales ≤ RMB 5M), and the effective 5% CIT applies to small low-profit enterprises (profit ≤ RMB 3M, ≤ 300 staff, ≤ RMB 50M assets). Both currently run through 31 December 2027 — we monitor renewal decisions.
What does switching to an outsourced accountant look like?
A defined handover checklist (chops, tax UKey, historical vouchers, bank tokens), one parallel month to verify balances, then a fixed monthly rhythm: documents in by an agreed date, filings by the 15th, bilingual reports after close. Most handovers complete within one month.
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