China Tax System & Filing System

Our service ensures companies in China fulfill their tax obligations and adhere to the monthly requirements of the national tax legislation.

All companies in China are required to meet their tax obligations and complete monthly China Tax System as set out in the national tax legislation. The objective of compliance with Chinese tax legislation is to maintain control over the operations of the subsidiary and minimize risk associated with non-compliance. In China, businesses must meet numerous administrative and compliance requirements on a monthly, quarterly, annual or ad-hoc basis.

Find out how you can help with all your tax needs by completing the form on the right-hand side of the page!

A thorough understanding of local Chinese tax law and regulatory environment are essential to operate successfully in China and to fulfill your China tax filings. Our team consists of Chartered Tax Advisors and licensed accountants with a comprehensive understanding of the Chinese regulatory environment and local practices. Combined with our international taxation advisors and our international partners , we are able provide comprehensive tax services in China, which ensures full compliance and mitigates risks to optimally position the Chinese operations of our clients within their group.

China Tax System Corporate

Through our tax compliance services, we remove the burden of tax administration for our clients and support with optimizing processes. Our tax service offering includes:

Calculating and optimization of Corporate Income Tax liability and ongoing tax compliance on a monthly, quarterly and annual basis.
Preparation and timely submission of China tax and returns as well as processing of tax payments.
Communication and negotiation with relevant local Chinese tax authorities.
Advise and updating of our clients on new tax legislation and policies.

China Value-Added Tax

China’s indirect tax system has undergone significant changes in recent years, most notably the introduction of a single Value Added Tax (VAT) system for goods and services. We support our clients with the following:

Filing of VAT returns.
VAT taxpayer registrations with Chinese authorities.
Applications for VAT exemptions and VAT refunds.
Advising on the recoverability of VAT and VAT refunds in China.
Advising on the customs tariffs and taxation of import/export.

VAT in China

China’s VAT system is widely considered to be quite a complex system. Over the...
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Export Vat Refund China

Since China does not, in principle, levy VAT over goods which are exported, it is important to note that Chinese entities which are engaged in exporting activities can apply for a VAT refund with the relevant tax authority in charge. By engaging in this procedure, a Chinese entity can claim back the input VAT associated with the materials/input for goods that have been exported.

When applying for export vat refund several documents must be submitted to the Chinese tax authority, including special VAT invoices (fapiao), customs declarations forms etc. As the procedure to claim an export VAT refund is considered complex and time-consuming, we alleviate the administrative burden for our clients by optimizing the process and applying for the VAT refund on their behalf.

Chinese Individual Income Tax

We support our clients with all aspects of individual income tax (IIT) for their local Chinese employees as well as their expatriate staff. You can read more about our Individual Income Tax Services in China at our HR & China Payroll Services page.

International Taxation & Transfer Pricing

When companies are taking part in business activities globally or engage in international transactions, these companies must not only be aware of local tax considerations but must view their operations in an international context and consider the cross-border impact of their activities. You can read more about how we at MSA support our clients with these aspects in terms of International Taxation and Transfer Pricing.

Testimonials

MSA has been our trusted advisor throughout the entire lifecycle of our China journey, enabling us to dispatch employees (EOR) to China while having no legal entity and the incorporation and operationalization of our Chinese subsidiary. After this, MSA continues to prove its value as an advisor in supporting not only Chinese accounting, taxation, and compliance requirements but also by advising on specific licensing requirements within the horticulture industry in China, such as those for trading in pesticides and other chemicals. With a profound understanding of our headquarters’ interests and a thorough understanding of local business practices in China, MSA has enabled us to balance the often-conflicting requirements for control and compliance with our ambitious China growth strategy.

Royal Brinkman

Vincent Van Der Wilk
Area Manager Asia & Africa at Royal Brinkman

For our fast-growing business, we need a reliable partner to handle all our payroll-related matters, which we found in MSA. They helped us streamline our internal processes by implementing and improving compliance processes from a legal perspective and in terms of our corporate policies. We fully trust in the confidentiality of our employees’ data, as they ensure secure data storage from internationally recognized providers. Whether on ad-hoc requests or long-term oriented recurring matters, we always receive a fast and complete response to our questions that help us achieve our compliance goals and overcome the challenges in payroll, IIT, and social security in China.

Genuine German

Damian Maib
Founder

MSA was our first choice when we were looking for a China-based accounting firm with a fundamental understanding of our Belgian background and the ability to connect two diverging business cultures. As our company operates with the corporate ERP system Oracle, we are delighted that MSA works through proprietary access directly in our system, ensuring the availability of our company figures in the format we are accustomed to. During our company’s setup procedure, they managed to organize particular steps without the personal presence of the company representatives (e.g., opening a bank account) by identifying alternative verification procedures. We appreciate that MSA always listens to our queries. They are very well connected both within China and internationally. In addition to our questions about our China business, we are glad to receive advice on questions about other international topics from their connections within their global network.

Hybrid Software

Joachim Van Hemelen
Chief Financial Officer

MSA has been an exceptional business partner for our company, whom have a thorough understanding of our internal processes and our ERP system. As a result, and combined with their expertise in finance and taxation, they have been able to support Feinmetall by training our finance- and administrative staff to ensure quality standards and compliance throughout all areas. Because of their availability on short notice, we can rely on MSA’s support at a moment’s notice if required. We further rely on MSA to follow our monthly business on site in China in terms of accounting, taxation, and general compliance. Ensuring full compliance with local regulations and transparency for our management team in Germany is essential and MSA is our trusted partner helping us achieve this.

Feinmetall

Patrik Dinser
Commercial Director

From day one of our collaboration, I have found the team at MSA perfect for our needs. As a UK based business with notable activities in the Far East, we are looking for clear, constructive and accurate advice along with of course day to day financial/fiscal support. This is exactly what we get, and this provides enormous reassurance over the numbers and furthermore excellent support as we grow our business in the Far East. A true partner to our business in every sense of the word.

Badgequo Ltd.

Matt Goldstein
Finance Director

MSA has been our trusted service provider since the establishment of our operations in China. With a profound understanding of Chinese compliance requirements and the ability to translate these requirements in an international context, MSA has enabled us to achieve an exceptional level of transparency and an understanding of the Chinese financial and administrative regulations. After the expansion of our operations in China we continue to rely on the expertise of MSA in relation to taxation matters. MSA continues to reserve dedicated staff members, with a thorough understanding of our operations, whom are ready to support our local finance team in a heartbeat should the need arise.

Lotus Bakeries NV

LOTUS BAKERIES CHINA

MSA is our advisor of choice for complex tax and financial advisory with respect to our China operations. MSA’s team of experts has supported us with extensive advice on various topics such as international transactions, tax implications and business structure optimization. We trust on the company’s knowledge and experience to make well-informed decisions that are key to our company’s success in China. Most notably, MSA’s solid advice and practical support has enabled us to successfully optimize our internal business structure, which included among others comprehensive advice on the optimal business structure for CIBES’ operations in China and subsequent support from MSA with the implementation of the new structure (incl. establishment of 40 branches across Mainland China).

Cibes Lift Group AB

Manuel Neuhofer
Director of Finance and Administration for ASIA & MENA CIBES Lift Group

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