(Source: https://pltfrm.com.cn)
The documentation required for foreign businesses to file taxes in China can be extensive and varies depending on the type of tax being filed, the nature of the business activities, and other specific circumstances. However, there are common documents that are generally required across various tax filings:
- Corporate Income Tax (CIT) Filings:
- Annual financial statements, including balance sheets, income statements, and cash flow statements.
- Tax reconciliation reports showing the adjustment from accounting profit to taxable profit.
- Documentation of tax prepayments made during the year.
- Proof of tax incentives or exemptions, if applicable.
- Transfer pricing documentation, if transactions with related parties have occurred.
- Value-Added Tax (VAT) Filings:
- VAT invoices (fapiao) issued and received.
- Records of export sales and relevant customs declarations, if applicable for VAT refund claims.
- Documentation of VAT paid on purchases.
- Calculation sheets for VAT payable or refundable.
- Withholding Tax:
- Contracts or agreements that involve payments subject to withholding tax (such as royalties, service fees, interest, etc.).
- Invoices or other documentation related to these payments.
- Proof of tax withheld and remitted to the tax authorities.
- Stamp Duty:
- Contracts and legal documents that are subject to stamp duty.
- Social Security and Housing Fund Contributions:
- Payroll records.
- Proof of social security and housing fund contributions made.
- Additional Documentation for Specific Situations:
- For special tax treatments or deductions (e.g., R&D expenditure), supporting documents are required.
- Documentation related to fixed assets, inventory, and other significant business assets.
- If applicable, documents related to special tax regimes, like those for High and New Technology Enterprises (HNTEs).
- General Compliance Documents:
- Business license and registration documents.
- Identification documents for legal representatives and key personnel.
- Bank statements and receipts for tax payments.
- Audit Reports:
- In some cases, especially for large taxpayers or specific industries, audited financial reports are required.
Foreign businesses in China must ensure that they maintain detailed and accurate records, as Chinese tax authorities may request additional documentation or clarifications during audits or reviews. The documentation should be in compliance with Chinese accounting standards and regulations. Due to the complexity of the Chinese tax system, it is often advisable for foreign businesses to seek assistance from local accounting and tax professionals to ensure complete and compliant tax filings.
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