HELP FOREIGN BUSINESSES SUCCEED IN CHINA AT EVERY STAGE

Operate in China

China Accounting & Bookkeeping: We Handle Your Monthly Compliance

Whether you’re still comparing how to handle accounting for a China entity or already running a WFOE, this guide covers your options — then how we manage your accounting records, tax filings, and fapiao administration on an ongoing monthly basis, so your team never has to track Chinese filing deadlines or navigate the tax bureau directly.

Every WFOE has monthly filing obligations from the date of registration — regardless of revenue or activity. We take care of all of it, and you receive a clean monthly financial package.

Before You Start

Bookkeeping in China: Your Options

Chinese accounting runs on different rules from most Western systems — Chinese Accounting Standards (CAS), a real-time digital fapiao system, and monthly filings that apply from your first month of registration, whether or not you’ve earned any revenue. Most foreign companies handle this one of three ways.

DIY In-House

Someone on your team learns the CAS filing system directly. Workable for a very small entity with simple transactions, but Golden Tax Phase IV’s real-time cross-checking makes errors easy to trigger and costly to unwind.

Local Freelance Bookkeeper

Lower monthly cost, but coverage is usually limited to basic filings. Export refunds, IIT for a foreign legal representative, or coordination with an overseas parent company are often outside scope.

Outsourced Full-Service Firm

A single provider covers bookkeeping, all statutory filings, fapiao administration, and English-language reporting for your parent company — typically running from a few thousand to over ten thousand RMB per month depending on transaction volume and taxpayer status.

The right fit depends mainly on transaction volume, whether you’re a general or small-scale VAT taxpayer, and whether you need reporting in English for a parent company. If you haven’t registered a China entity yet, the accounting setup — and its ongoing cost — is worth factoring into your market entry planning before you choose a structure.

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Core Service

Monthly Bookkeeping & Ledger Management

We maintain your company’s accounting records in accordance with Chinese Accounting Standards (CAS) on a full-cycle monthly basis — from source document collection through to financial statement preparation.

What We Do

  • Collect and categorise all source documents
  • Prepare journal entries and post to the general ledger
  • Maintain subsidiary ledgers by cost centre or project
  • Perform monthly trial balance reconciliation
  • Prepare monthly balance sheet (资产负债表)
  • Prepare monthly profit & loss statement (利润表)
  • Prepare monthly cash flow summary
  • Coordinate directly with tax filing each month

What You Provide

  • Monthly bank statements (all accounts)
  • VAT invoices issued and received
  • New contracts (first occurrence)
  • Payroll data: headcount, salaries, bonuses
  • Expense receipts for reimbursement
  • Notification of any company changes

What You Receive Each Month

A complete monthly financial package — bookkeeping records, trial balance, and financial statements prepared in both Chinese (regulatory) and English (management). Ready for parent company reporting, bank submission, or auditor handover.

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Filing Services

Tax Filing & Obligations

We handle all statutory tax declarations on your behalf — monthly, quarterly, and annual. Every filing is prepared from the bookkeeping records we maintain, submitted on time, and confirmed back to you with the official receipt.

Tax Type
We Handle
Frequency
Value-Added Tax (VAT)
增值税
Prepare and submit VAT return; calculate net VAT payable; coordinate payment
Monthly
Urban Construction Tax & Education Surcharge
城建税及教育附加
Calculated and filed alongside VAT submission
Monthly
Individual Income Tax — Withholding
个人所得税代扣代缴
Calculate IIT on employee salaries; submit withholding declaration; coordinate payment
Monthly
Stamp Duty
印花税
Identify qualifying contracts; prepare and submit stamp duty declaration
Monthly / per contract
Corporate Income Tax — Prepayment
企业所得税预缴
Calculate quarterly CIT prepayment; submit declaration; coordinate payment
Quarterly
Corporate Income Tax — Annual Settlement
企业所得税汇算清缴
Reconcile full-year taxable income; prepare settlement return; manage any supplementary payment or refund
Annual (by 31 May)

What You Receive

Monthly filing confirmation with official tax bureau receipts. Quarterly CIT prepayment summary. Annual CIT settlement report with year-on-year comparison. All documents stored and available for audit or bank requests.

For tax registration, taxpayer status changes, legal representative updates, and tax deregistration, see our Tax Filing & Compliance service →

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Invoice Management

VAT & Fapiao Management

China’s fapiao system is fully digitised and monitored in real time by the tax bureau. We manage your company’s invoicing operations end to end — from issuing invoices to clients through to verifying supplier invoices and reconciling your monthly VAT position.

What We Do

  • Issue VAT ordinary invoices (普票) and special invoices (专票) on your behalf
  • Verify and authenticate all supplier invoices received
  • Manage input VAT deduction tracking and certification windows
  • Handle red-letter invoice corrections and cancellations (红冲)
  • Maintain and coordinate Golden Tax device (税控盘) servicing
  • Reconcile output vs input VAT each month

What You Provide

  • Invoice issuance instructions (client name, amount, item description)
  • All supplier invoices received during the month
  • Notification of any invoices to be corrected or cancelled

General Taxpayer vs Small-Scale Taxpayer

Your company’s VAT taxpayer status determines what invoices you can issue and whether you can claim input VAT deductions. This is set at registration — we advise on the right status for your business model before you register.

General Taxpayer (一般纳税人)

  • Can issue VAT special invoices (专票) independently
  • Can claim input VAT deductions against output VAT
  • Required for most B2B businesses where clients need VAT recovery
  • Mandatory above RMB 5M annual revenue; voluntary upgrade available

Small-Scale Taxpayer (小规模纳税人)

  • Issues ordinary invoices (普票) at 3% collection rate
  • Cannot independently issue VAT special invoices
  • No input VAT deduction available
  • Lower administrative burden; suits early-stage or low-revenue entities

Not sure which taxpayer status is right for your WFOE? Tax status interacts with your entity structure, business scope, and client requirements. See our full guide: Entity Structure & Tax Status Planning →

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Export Businesses

Export Tax Refunds

If your WFOE exports goods or qualifying cross-border services, you may be entitled to recover VAT paid on inputs. We manage the full refund application process — from eligibility assessment through to receipt of the refund.

What We Do

  • Assess your eligibility and applicable refund rate by product category
  • Match customs export declarations to corresponding VAT invoices
  • Prepare and submit the refund application to the tax bureau
  • Coordinate foreign exchange receipt reconciliation (外汇核销)
  • Follow up with the tax bureau on refund progress
  • Advise on zero-rate treatment for qualifying cross-border services

What You Provide

  • Customs export declarations (报关单)
  • Foreign exchange receipt documentation
  • Purchase invoices for exported goods
  • Export contracts

Export VAT Refund

Input VAT on exported goods is refunded after export. Refund rates vary by HS code — typically 9% or 13%. Available to general taxpayer exporters.

Export VAT Exemption

Output VAT on the export is waived. Simpler to administer but no separate input VAT refund. Typically applies to small-scale taxpayers.

Zero-Rate Cross-Border Services

Consulting, technology, and R&D services provided to overseas clients may qualify for zero-rated VAT treatment with proper contract and FX documentation.

What You Receive

Refund application submitted and tracked. Average processing time: 1–3 months depending on the local tax bureau. Refund amount confirmed and reconciled against your accounting records on receipt.

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Personal Tax

Individual Income Tax: Legal Representative

Foreign legal representatives of WFOEs often have IIT obligations in China that go beyond standard payroll withholding — particularly where income comes from multiple sources or includes overseas compensation. We manage the annual IIT settlement filing on their behalf.

What We Do

  • Review all income sources and assess annual IIT position
  • Identify applicable deductions (专项附加扣除) not yet claimed
  • Assess eligibility for tax treaty benefits where relevant
  • Prepare and submit the annual IIT settlement return
  • Coordinate refund claim or supplementary payment with the tax bureau
  • Advise on overseas income declaration obligations

What You Provide

  • Full-year income summary (China and overseas, if applicable)
  • Overseas employer proof of salary (if applicable)
  • Details of deductible expenses (housing loan, dependants, etc.)
  • Prior year tax payment records

What You Receive

Annual IIT settlement filing confirmed, with official tax bureau receipt. Refund claim submitted where applicable (filing window: 1 March – 30 June of the following year). Written summary of the year’s IIT position for your records.

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Key Dates

Filing Calendar — Dates We Track for You

We monitor all filing deadlines across the calendar year as part of our ongoing service. Nothing falls through the cracks.

Frequency
Deadline
What We File
Monthly
By 15th of following month
VAT return · Urban construction tax & education surcharge · IIT withholding · Stamp duty
Quarterly
By 15th of month after quarter-end
Corporate Income Tax quarterly prepayment (企业所得税预缴)
Annual
31 May
CIT annual settlement (企业所得税汇算清缴) — prior year reconciliation
Annual
30 June
IIT annual settlement for legal representative · SAMR annual business report (工商年报)
Annual
Recommended: April
Annual financial audit — required before profit distribution or capital repatriation. See Annual Audit →

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Quick Answers

Frequently Asked Questions

How much does bookkeeping cost in China?

Monthly outsourced bookkeeping for a foreign-invested company typically runs from a few thousand RMB for a small-scale taxpayer with low transaction volume, up to over ten thousand RMB per month for a general taxpayer with higher volume, export activity, or payroll to process. The exact fee depends on transaction count, VAT taxpayer status, and whether English-language reporting is required. We provide a fixed monthly quote after a short review of your entity’s activity.

Do I need a WFOE before I can get accounting help in China?

Yes, for the ongoing monthly bookkeeping and tax filing services on this page — these are tied to a registered China entity’s tax obligations. If you’re still deciding whether to set up a WFOE, representative office, or another structure, our market entry strategy service can help you choose the right structure first, with accounting requirements factored into that decision.

Our WFOE has no revenue yet. Do we still need monthly filings?

Yes. Filing obligations begin from the month of tax registration — typically within a few weeks of company registration. A company with no revenue must still submit nil (zero) declarations each month. We handle this as part of our standard monthly service, so you don’t need to track it yourself.

Can a small-scale taxpayer issue VAT special invoices?

Not directly. Small-scale taxpayers can apply to the local tax bureau to have special invoices issued on their behalf for specific transactions, but this is not a standard arrangement. If your business regularly needs to issue special invoices — because your clients are general taxpayers who require input VAT — upgrading to general taxpayer status is usually the practical solution. We advise on this during onboarding.

What is the difference between export VAT refund and export VAT exemption?

A VAT refund means the input VAT you already paid on goods and materials used in the exported product is refunded in cash after export. VAT exemption means the output VAT on the export transaction is simply waived — but there is no refund of input VAT. For manufacturing exporters with significant input costs, the refund is generally more valuable. We assess which mechanism applies to your business as part of our export refund service.

Does the legal representative need to file IIT even if their salary is paid overseas?

Potentially yes. A foreign legal representative who qualifies as a Chinese tax resident (present in China for 183 days or more in a calendar year) is subject to IIT on worldwide income — including salary paid by the parent company overseas. We conduct a residency and income review for legal representatives as part of our IIT service to determine their actual filing obligations.

What does Golden Tax Phase IV mean for our day-to-day compliance?

Golden Tax Phase IV significantly increases the tax bureau’s ability to cross-check your reported figures against bank transactions, invoice data, and third-party sources in real time. For a detailed breakdown of what has changed and what it means for WFOE operations in 2026, read our dedicated guide: Golden Tax Phase IV: WFOE Compliance Guide 2026 →

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Ready to hand off your China accounting?

We manage monthly bookkeeping, all tax filings, fapiao, and year-end compliance — so your team can focus on the business.

Book a Consultation