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Step by Step
Run your business in China
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Taxation
Tax Filings Routine for Your Entity in China
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According to the relevant laws and regulations of the national tax authorities, the statutory formalities of tax obligations must be performed from the date of establishment of a Company to the termination of the business activities （i.e. opening of your Company’s taxation account within 30 days of registration）. The tax registration is also a statutory system for the tax authorities to register and manage the production and business activities of taxpayers in accordance with the provisions of the tax law.
In this article, we will present you with the basics that a Company shall comply with in order to begin its venture.
1. Tax Registration to establish Company Taxation Accounts
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This step refers to the registration and management of the production and operation activities of taxpayers newly opened by the tax authorities with the approval of the administrative department for industry and commerce in accordance with the provisions of the tax law.
For tax registration, the new Company needs to register both corporate information and individual information of the Legalized Person in the electronic tax bureau from where the Company is registered. Upon successful completion of the electronic system, the individual shall be required to log in, while the company shall be required to upload its business license and the Unified Social Credit Code, known as the 统一社会信用代码for verification.
The tax-related matters of newly established taxpayers include: check and ratify the tax types, get the access to tax control equipment, apply for the Fapiao, and the basic tax-related business that the newly opened corporate needs to handle before it can enter normal operation.
For tax registration, the new Company needs to register both corporate information and individual information of the Legalized Person in the electronic tax bureau from where the Company is registered. Upon successful completion of the electronic system, the individual shall be required to log in, while the company shall be required to upload its business license and the Unified Social Credit Code, known as the 统一社会信用代码for verification.
The tax-related matters of newly established taxpayers include: check and ratify the tax types, get the access to tax control equipment, apply for the Fapiao, and the basic tax-related business that the newly opened corporate needs to handle before it can enter normal operation.
2. Monthly / Quarterly Tax Declarations
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In China, a Company’s mandatory filing frequency is related to its estimated annual income designation, which is set at the time of opening tax accounts. In general, the Taxation regulations have separated all entities into two large forms: Small Income Filer and General Income Filer.
3. Tax Clearance and Cancellation of Tax Accounts
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This step refers to the formalities for canceling the tax registration when the taxpayer terminates the tax obligation due to statutory reasonswith the local authority where the Company is located. All responsibilities and tax burden of a Company shall cease to exist after the successful issuance of Tax Accounts Clearance and Cancellation Certificate is issued. As such, this step is necessary in the event when a Company begins its dissolution.
As most of the administrative processes are being performed electronically, this step also can be initiated online.
For taxpayers (corporates) who do not meet the conditions for immediate dissolution, the Electronic Tax Bureau will issue the Notice of Tax Matters (Notice of Outstanding Matters)so that further steps can be taken.. For those who meet the conditions to dissolve for but have outstanding matters, the taxpayer (Company) can sign the a document refer to as commitment letter about immediately handle the tax clearance,《即办<清税证明>承诺书》, then the Electronic Taxation Bureau will issue the Tax Clearance Certificate《清税证明》.If the taxpayer is unwilling to sign the "《即办<清税证明>承诺书》", the Notice of Tax Matters (Notice of Outstanding Matters) will be issued by the deregistration window.
If the taxpayer meets the conditions for immediate handling and has no outstanding matters, the tax cancellation window will immediately issue a Tax Clearance Certificate and set the taxpayer status to "Cancellation".
As most of the administrative processes are being performed electronically, this step also can be initiated online.
For taxpayers (corporates) who do not meet the conditions for immediate dissolution, the Electronic Tax Bureau will issue the Notice of Tax Matters (Notice of Outstanding Matters)so that further steps can be taken.. For those who meet the conditions to dissolve for but have outstanding matters, the taxpayer (Company) can sign the a document refer to as commitment letter about immediately handle the tax clearance,《即办<清税证明>承诺书》, then the Electronic Taxation Bureau will issue the Tax Clearance Certificate《清税证明》.If the taxpayer is unwilling to sign the "《即办<清税证明>承诺书》", the Notice of Tax Matters (Notice of Outstanding Matters) will be issued by the deregistration window.
If the taxpayer meets the conditions for immediate handling and has no outstanding matters, the tax cancellation window will immediately issue a Tax Clearance Certificate and set the taxpayer status to "Cancellation".