Once your WFOE is officially registered, it's required to maintain proper accounting records in accordance with accounting standards in China and to report taxes on both monthly (for business tax, individual income tax) and quarterly (corporate income tax) basis. Late submissions will face penaltie and surcharges.

 

WFOE must register its tax reporting method with the local tax authority and apply for an official invoice book which will allow the WFOE to issue invoice to it's clients within China and abroad.

 

Our part time accountant can assist you by negotiating with your local tax officer to use the proper tax reporting method for your WFOE, as well as submit the tax reports monthly and quarterly on your behalf.

 

Accounting Set-up, Book-keeping Supporting Documents
 

For WFOEs, all accounting vouchers, ledgers as well as financial statements should be prepared and maintained under PRC Generally Accepted Accounting Principles (GAAP).

 

1. Source documents, Journal Vouchers (JVs) and ledgers should be in Chinese.
2. Standard China Chart of Accounts (COA) should be adopted.
3. All JVs in the prescribed format should be filed and bound according to China¡¦s standard accounting practice.
4. The bank book, cheque records and bank reconciliation should be maintained as part of the accounting records.

 

Financial Statement Format/Content
 

1. The balance sheet and profit & loss statement are required monthly statutory filings for trading WFOEs.
2. Financial statements should be prepared under PRC GAAP using the defined format.
3. Financial statements to be submitted to the Tax Bureau should contain the company stamp before submission.

 

Group Reporting Reconciliation
 

If the parent company is required to prepare the balance sheet and profit/loss statements for the trading WFOE under IFRS to consolidate inter-company accounts, such group reporting statements should be prepared and reconciled to the PRC financial statements.
 

 

Our Bookkeeping Service for WFOE

 

1. Initial accounting system set-up;
2. Update the books of WFOE in accordance with Chinese Accounting Standards;
3. Prepare monthly financial statements for tax filing purpose and submit if applicable;
4. File monthly Business Tax Return;
5. File Corporate Income Tax Return, Quarterly;
6. Individual Income Tax Filing for local employees;
7. Individual Income Tax Filing for expat employees;

8. Advise you with tax planning opportunities that might help the WFOE reduce the burden of tax on itself and its staff.

 

For further information or assistance, please feel free to contact us

 

Tel: (86.20); 37887606         Mobile: 13928789801 (You can inquire in English)

Fax: (86.20); 37887609         E-mail:2291837655@qq.com

 

Wechat:563491716              Skype: zanyaco                  

QQ:1502027480                   Website: http://www. companyformation86.com

Address: Room 1001, No.621, Tianhe Road, Tianhe District, Guangzhou, China