Financial Reporting Service Overview
Financial reporting services bridge China statutory accounting requirements and global multinational group reporting standards, delivering structured formal statements for statutory audits, regulatory filings, overseas headquarters review and global consolidation. For foreign-invested enterprises, local financial records prepared under Chinese Accounting Standards (CAS) often require systematic conversion to align with IFRS or US GAAP group reporting formats, creating recurring reconciliation workload and month-end closing pressure. Our services reconcile local CAS statutory records with international reporting formats while meeting official supervision requirements, external audit standards and parent company consolidation schedules, delivering consistent, transparent and audit-ready financial visibility across cross-border finance teams.
Core Business Scope
• PRC statutory annual financial statement preparation under Chinese Accounting Standards (CAS) and full coordination with external annual statutory audits
• Conversion of local CAS financial data to IFRS / group GAAP formats, multi-currency consolidated reporting and global group monthly / quarterly close package delivery
• Foreign investment regulatory financial disclosures, customised bilingual management reports and formal reconciliation documentation between local books and global ERP systems
• Dedicated support for parent company group audits, bank financing reviews, transaction due diligence and quarterly group financial disclosure processes
Service Features
• Dual standard reporting format: official China statutory compliance format + customised global group reporting format
• Full bilingual (English-Chinese) financial statements and supporting schedules for cross-border overseas management and audit review
• Audit-ready documentation packages and clear, traceable reconciliation trails between local statutory books and global group records
• Consistent reporting cycles strictly aligned with global group month-end and year-end closing schedules to avoid consolidation delays
• Dedicated end-to-end support for annual external audits, regulatory inspections, bank financing applications and equity transaction due diligence
• Strict version control and full audit trail documentation for ongoing global internal audit oversight and regulatory record retention requirements
Core Value
We streamline global month-end and year-end consolidation cycles, resolve recurring local-to-global accounting differences and ensure full compliance with both China regulatory reporting rules and global group financial policies. We accelerate global financial close timelines, reduce cross-border audit friction, and deliver clear, consistent financial visibility to overseas headquarters management. Reliable structured reporting also supports financing activities, equity transactions and stable long-term cross-border investment governance, turning local financial data into actionable, standardised insight for global decision-making.
Key Regulatory Context
CAS maintains ongoing convergence with IFRS but retains specific differences in areas including depreciation rules, impairment treatment, government grants, lease accounting, related party disclosure and foreign exchange gain/loss treatment. All foreign-invested enterprises in China require annual statutory audits by a local qualified CPA firm, and must submit aligned financial data for annual foreign investment reporting, industrial and commercial annual disclosure and foreign exchange administration requirements. Big Four and global group audits typically require additional reconciliation schedules and supporting working papers beyond local statutory reports.
Related Services
Office Leasing
We provide legal registered office addresses required for foreign company incorporation, with spaces matching local preferential policies to maximize your investment benefits.
Tax & Accounting Services
We offer full accounting and tax services complying with China’s fiscal laws, avoiding compliance risks while delivering legal tax optimization tailored for foreign firms.
Residence Permit Application
We process fully legal residence permits with the longest available stay period. Simplified procedures ensure easy application and enable valid tax savings for overseas employees.
Frequently Asked Questions
Yes. Foreign-owned companies are subject to the same tax regulations as domestic companies and must comply with Chinese tax filing and reporting requirements.
Yes. Every registered company in China must maintain accounting records and submit tax filings, regardless of whether it generates revenue.
Yes. Even if a company has no business activity, it is generally required to submit zero-tax filings and maintain compliance with local tax authorities.
Failure to file taxes may result in fines, penalties, abnormal business status, restrictions on legal representatives, and difficulties when renewing licenses or closing the company.
Most companies are required to submit monthly, quarterly, and annual tax reports depending on their business activities and tax registration status.
The standard Corporate Income Tax (CIT) rate is 25%. However, qualified High and New Technology Enterprises (HNTEs) may enjoy a reduced rate of 15%.
Value-Added Tax (VAT) is a consumption tax applied to the sale of goods, services, and imports. VAT rates vary depending on the industry and transaction type.
The most common VAT rates are:
13% for goods and manufacturing
9% for transportation and construction
6% for modern services and consulting
Specific rates depend on the business sector.
Yes. Certain exporters and qualifying businesses may apply for VAT rebates or refunds under applicable regulations.
A Fapiao is an official tax invoice issued through China’s tax system. It serves as proof of a transaction and is often required for accounting and tax deduction purposes.
Yes. After completing tax registration and obtaining approval from tax authorities, a company can issue official invoices.
Companies should maintain:
- Financial statements
- Tax records
- Payroll records
- Bank statements
- Contracts
- Invoice records
These documents are important for audits and compliance reviews.
Many foreign-invested companies are required to undergo annual financial reporting procedures and submit annual compliance reports to relevant authorities.
Bookkeeping involves recording financial transactions, while tax filing involves reporting taxable activities and paying taxes to government authorities.
Although possible, most foreign investors choose professional accounting firms because Chinese tax regulations are complex and frequently updated.
A trading company may be subject to:
- Corporate Income Tax
- Value-Added Tax
- Surcharges
- Employee-related taxes and contributions
While substantially converged, CAS and IFRS differ in specific measurement rules, disclosure requirements and statutory presentation formats. We prepare formal reconciliation statements to map local CAS balances to IFRS group reporting standards for seamless consolidation.
Standardised recurring adjustment templates, pre-mapped account structures and aligned close checklists significantly reduce reconciliation workload. We deliver pre-formatted group close packages to match parent company timelines and cut cross-border closing cycles.
Dividend repatriation requires audited annual statutory financial statements, corporate income tax final settlement confirmation, board profit distribution resolutions and relevant withholding tax filings. We prepare full compliant documentation packages to support smooth foreign exchange settlement and dividend remittance.
Consulting companies typically pay:
- Corporate Income Tax
- VAT on service income
- Employee-related taxes
Yes. Employers are generally responsible for withholding individual income tax and making required social insurance contributions.
Individual Income Tax is a tax imposed on employee income. Employers are generally responsible for withholding and remitting the tax on behalf of employees.
Foreign employees working in China may be subject to Individual Income Tax depending on their residency status, income source, and applicable tax treaties.
Several cities actively attract foreign investment through incentives and subsidies, including:
- Shanghai
- Shenzhen
- Suzhou
- Ningbo
- Chengdu
Benefits may include office rent subsidies, R&D grants, talent incentives, and reduced tax burdens for qualifying businesses.
An HNTE is a government-recognized technology company that may qualify for tax incentives, including a reduced Corporate Income Tax rate of 15%.
Government support is often available for:
- Artificial Intelligence
- Biotechnology
- Semiconductor Manufacturing
- Renewable Energy
- Advanced Manufacturing
- Robotics
Suzhou offers strong industrial parks, government support programs, R&D incentives, and proximity to Shanghai’s talent and financial resources.
Yes. Depending on the location and industry, companies may qualify for grants related to investment, innovation, talent recruitment, exports, and research activities.
Transfer pricing refers to transactions between related companies. Businesses with international operations may need to comply with transfer pricing regulations and documentation requirements.
Yes. Qualified companies may enjoy additional deductions for eligible research and development expenses.
Suzhou, Dongguan, Ningbo, and several development zones across China frequently offer incentives for advanced manufacturing projects.
China provides access to skilled engineers, large consumer markets, government support programs, and innovation-focused industrial clusters.
For many industries, yes. While tax rates are not the lowest globally, companies often benefit from market access, supply chain advantages, government incentives, and industry-specific support policies.
The most common mistake is assuming that inactive companies do not need accounting or tax filing. Even dormant companies generally have compliance obligations.
No. Companies usually need to complete tax clearance procedures before they can legally close or deregister.
Professional accounting firms help businesses:
- Maintain compliance
- Reduce tax risks
- Prepare financial reports
- Handle audits
- Manage communication with tax authorities
