Tax Mainland

Mainland China Accounting, Audit & Tax Compliance Services

Statutory Compliance (PRC)

Maintain proper accounting books and standardized bookkeeping

Issue/collect fapiao that reflect real transactions

File taxes on time with truthful disclosures

Annual statutory audit required for certain enterprises

Golden Tax Phase IV — Enforcement Upgrade

Full-chain monitoring of fapiao + fund flows

Cross-agency data sharing & reconciliation

AI-driven risk alerts and targeted audits

Industry-specific surveillance

Business Value (Beyond Compliance)

Reliable data for planning & budgeting

Bank-ready financial statements

Lawful tax efficiency; penalty avoidance

Stronger internal controls & early issue detection

Greater transparency → higher enterprise value

China's Three Core Taxes — Quick Guide (Simplified)

VAT — Value-Added Tax

✓ Rates: 13% / 9% / 6%(general taxpayers);3% small-scale

✓ Key mechanics: input VAT credit, strict invoice (fapiao) control, monthly/quarterly filing

✓ Exports: zero-rated + possible VAT refund

CIT — Corporate Income Tax

✓ Standard: 25%

✓ Preferential: 15% (High-Tech), lower SME effective rates, 15% in certain regions

✓ Tax base: income − exempt items − deductible expenses; losses carry-forward 5 years

✓ Common incentives: R&D super-deduction, tech transfer relief, energy-saving incentives, VC/angel benefits

IIT — Individual Income Tax

✓ Comprehensive income: 3%–45% progressive

✓ Business income: 5%–35%

✓ Investment income: ~20% (interest/dividends)

✓ Deductions: RMB 60,000 standard + social insurance/HF + special deductions (education, rent, mortgage interest, elderly support, etc.)

End-to-End Process (Simplified)

Monthly Bookkeeping (Ongoing)

✓ Collect vouchers (fapiao, bank slips, expenses)

✓ Prepare journal entries & post ledgers

✓ Bank/counterparty reconciliations

✓ Monthly management reports (BS, P&L, KPIs)

Tax Filing (Monthly/Quarterly)

✓ VAT calculation & filing

✓ IIT payroll withholding & filing

✓ Surcharges (Urban Construction, Education, etc.)

✓ Fapiao issuance, certification, and control

Year-End Audit & CIT Reconciliation

✓ Finalize books and close accounts

✓ Inventory & fixed-asset checks

✓ Audit preparation + fieldwork

✓ CIT annual reconciliation

✓ Output: signed audit report + CIT report

Annual Public Reporting (Jan–Jun)

✓ Industrial & Commercial annual report (publicity system)

✓ Tax annual forms (e.g., related-party filings)

✓ Statistical reporting (if required)

✓ Other local annual filings

Fit-for-Purpose — Who Should Choose What?

Choose Hong Kong if you

Run international/cross-border trade with operations largely outside HK Value a simple, stable, low-tax regime and free capital movement Need banking access and a clean holding/trading platform

Choose Mainland China if you

Earn most revenue in China or rely on local supply chains
Qualify for industry/region incentives (e.g., High-Tech, FTZ)
Target onshore consumers and may pursue a China listing

Combination Strategy (common)

Hong Kong company as regional HQ/holdco/trade platform
Mainland entity for manufacturing, sales and operations
Coordinate to optimize overall tax, manage TP/withholding, and ensure compliance on both sides

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