Monthly Bookkeeping Services
Licensed monthly bookkeeping and recurring tax compliance for audit-ready foreign-invested enterprises in mainland China.
Monthly Bookkeeping Services
Unlike overseas jurisdictions that allow simplified in-house record-keeping, China’s regulatory system requires 100% standardized monthly bookkeeping following Chinese Accounting Standards (CAS). Every transaction, invoice, bank entry, payroll record, and expense voucher must be classified, recorded, and archived strictly in line with local bureau requirements. Irregular monthly bookkeeping will directly cause financial data inconsistency, failed annual audits, and abnormal enterprise tax status.
Scope of Our Monthly Bookkeeping Service
Our licensed local accountants conduct full-cycle monthly accounting processing tailored for foreign companies, covering all routine onshore financial activities:
We collect, verify, and classify all original monthly business documents, including official tax invoices, bank statements, payment receipts, expense reports, payroll slips, and social insurance records. We filter invalid or non-deductible documents and correct accounting irregularities that foreign in-house teams often overlook.
We complete full formal bookkeeping entries in compliance with CAS standards, including general ledgers, subsidiary ledgers, journal entries, and cost allocation records. All accounts are structured to match China’s official fiscal filing system while remaining reconcilable with overseas parent company financial reports.
We process monthly salary accounting, individual income tax accrual, social insurance, and housing fund booking. We ensure full compliance with local labor financial rules and provide clear breakdowns for expatriate and local employee cost reporting.
At the end of each month, we complete full account reconciliation, including bank balance reconciliation, receivables and payables verification, inventory checking (if applicable), and expense carry-forward adjustments. This ensures zero discrepancies before tax declaration cycles.
We issue standard monthly financial reports, including balance sheets, profit and loss statements, and cash flow statements. These documents satisfy both Chinese statutory supervision requirements and global parent company consolidation and review needs.
Service Features for Foreign Enterprises
Books fully compliant with CAS for local authorities, while structured to align with international financial logic for overseas management review.
Managed exclusively by licensed PRC accountants to eliminate the legal risk of unqualified internal bookkeeping.
Strict monthly closing procedures prevent year-end data chaos common among self-managed foreign company accounts.
All electronic vouchers and financial files are systematically filed for long-term tax bureau inspection and annual audit use.
Core Value
Stable monthly bookkeeping forms the fundamental guarantee of clean tax records, smooth quarterly and annual filings, successful external audits, and legal profit repatriation for foreign investors. GEI eliminates the common pain points of foreign companies, including unfamiliar local accounting rules, inconsistent month-end closing standards, and undocumented financial irregularities that accumulate into major compliance risks.
By outsourcing your monthly bookkeeping to GEI’s professional team, foreign enterprises maintain standardized, transparent, and audit-ready China financial books throughout the entire operation cycle.
Statutory Tax Filing
Statutory tax filing is the mandatory recurring tax compliance service for foreign-invested companies in mainland China, governed by PRC tax law and operated via the official national electronic tax system. It covers regular tax calculation, official tax return submission, invoice management and timely tax payment, to maintain normal enterprise tax status and avoid regulatory penalties.
Core Service Scope
Our licensed tax professionals complete monthly tax accounting and filings:
- VAT calculation, input VAT verification, tax invoice validation and monthly VAT declaration
- Monthly individual income tax (IIT) withholding and filing for local employees and expatriate staff
- Social insurance, housing fund and surcharge tax periodic declarations
- Reconciliation between book accounting records and tax basis data, resolving regular book-tax differences
- Quarterly corporate income tax prepayment filing and tax payment confirmation
- Local regional tax submissions and statistical regulatory reports
- Tax voucher archiving and payment record management
- Annual corporate income tax reconciliation filing before the official May deadline
- Deduction verification, loss carry-forward confirmation and annual tax adjustments
- Completion of required annual regulatory disclosures for foreign investment enterprises
- Full tax document filing for official tax inspections and audits
- Daily tax invoice issuance, cancellation, validation and monthly invoice inventory management
- Maintenance of e-tax accounts, tax Ukey systems and digital invoice platforms
- Regular tax status monitoring and official tax bureau notice follow-up
Compliance Rules & Key Deadlines
Most monthly tax returns are due by the 15th of each month, subject to official tax bureau holiday adjustments. Late or inaccurate filings may result in fines, tax credit downgrades, locked invoicing functions, restricted foreign exchange settlement and obstacles to profit repatriation. All filings follow Chinese tax regulations and local municipal tax requirements.
Service Features
- Managed by registered local tax practitioners to meet formal PRC compliance requirements
- Structured records for both local regulators and overseas parent group review
- Proactive tax rule update reminders and deadline alerts
- Full documentation retained for long-term tax inspection readiness
Frequently Asked Questions
1.Do foreign-owned companies need to pay taxes in China?
Yes. Foreign-owned companies are subject to the same tax regulations as domestic companies and must comply with Chinese tax filing and reporting requirements.
2.Is accounting mandatory for companies in China?
Yes. Every registered company in China must maintain accounting records and submit tax filings, regardless of whether it generates revenue.
3.Do I need to file taxes if my company has no income?
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.
4.What happens if a company fails to file taxes in China?
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.
5. How often must companies file taxes in China?
Most companies are required to submit monthly, quarterly, and annual tax reports depending on their business activities and tax registration status.
6. What is the Corporate Income Tax rate in China?
The standard Corporate Income Tax (CIT) rate is 25%. However, qualified High and New Technology Enterprises (HNTEs) may enjoy a reduced rate of 15%.
7. What is VAT in China?
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.
8.What are the current VAT rates in China?
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.
9.Can foreign companies claim VAT refunds?
Yes. Certain exporters and qualifying businesses may apply for VAT rebates or refunds under applicable regulations.
10.What is a Fapiao?
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.
11.Can a newly established company issue Fapiao?
Yes. After completing tax registration and obtaining approval from tax authorities, a company can issue official invoices.
12.What accounting records must companies keep?
Companies should maintain:
- Financial statements
- Tax records
- Payroll records
- Bank statements
- Contracts
- Invoice records
These documents are important for audits and compliance reviews.
13.What is the annual audit requirement in China?
Many foreign-invested companies are required to undergo annual financial reporting procedures and submit annual compliance reports to relevant authorities.
14.What is the difference between bookkeeping and tax filing?
Bookkeeping involves recording financial transactions, while tax filing involves reporting taxable activities and paying taxes to government authorities.
15.Can foreign investors manage accounting themselves?
Although possible, most foreign investors choose professional accounting firms because Chinese tax regulations are complex and frequently updated.
16.What taxes does a trading company usually pay in China?
A trading company may be subject to:
- Corporate Income Tax
- Value-Added Tax
- Surcharges
- Employee-related taxes and contributions
17.What taxes does a consulting company usually pay?
Consulting companies typically pay:
- Corporate Income Tax
- VAT on service income
- Employee-related taxes
18.Is payroll tax required in China?
Yes. Employers are generally responsible for withholding individual income tax and making required social insurance contributions.
19.What is Individual Income Tax (IIT)?
Individual Income Tax is a tax imposed on employee income. Employers are generally responsible for withholding and remitting the tax on behalf of employees.
20.Do foreign employees pay taxes in China?
Foreign employees working in China may be subject to Individual Income Tax depending on their residency status, income source, and applicable tax treaties.
21.Which Chinese cities offer the best tax incentives for foreign investors?
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.
22.What is a High and New Technology Enterprise (HNTE)?
An HNTE is a government-recognized technology company that may qualify for tax incentives, including a reduced Corporate Income Tax rate of 15%.
23.Which industries receive the most tax incentives in China?
Government support is often available for:
- Artificial Intelligence
- Biotechnology
- Semiconductor Manufacturing
- Renewable Energy
- Advanced Manufacturing
- Robotics
24.Why do many foreign technology companies choose Suzhou?
Suzhou offers strong industrial parks, government support programs, R&D incentives, and proximity to Shanghai’s talent and financial resources.
25.Can foreign companies receive government subsidies in China?
Yes. Depending on the location and industry, companies may qualify for grants related to investment, innovation, talent recruitment, exports, and research activities.
26.What is transfer pricing in China?
Transfer pricing refers to transactions between related companies. Businesses with international operations may need to comply with transfer pricing regulations and documentation requirements.
27.Are there tax benefits for R&D activities in China?
Yes. Qualified companies may enjoy additional deductions for eligible research and development expenses.
28.Which city is best for foreign manufacturing companies from a tax perspective?
Suzhou, Dongguan, Ningbo, and several development zones across China frequently offer incentives for advanced manufacturing projects.
29.Why do many foreign companies establish R&D centers in China?
China provides access to skilled engineers, large consumer markets, government support programs, and innovation-focused industrial clusters.
30.Is China still competitive from a tax perspective in 2026?
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.
31.What is the biggest accounting mistake foreign companies make in China?
The most common mistake is assuming that inactive companies do not need accounting or tax filing. Even dormant companies generally have compliance obligations.
32.Can a company be deregistered if taxes are not filed?
No. Companies usually need to complete tax clearance procedures before they can legally close or deregister.
33.Why do foreign investors hire accounting firms in China?
Professional accounting firms help businesses:
- Maintain compliance
- Reduce tax risks
- Prepare financial reports
- Handle audits
- Manage communication with tax authorities
Ready to standardize your monthly accounting?
Speak with GEI about bookkeeping, tax declarations, payroll accounting and audit-ready financial records.
