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Corporate Social Credit System

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With China's Corporate Social Credit System being fully implemented by 2020, it is more important than ever to have a compliant business and be aware of the data that is available on your company. As the Chinese Corporate Social Credit System will make the enforcement of laws and regulations stricter and more systematic, it is essential to be fully up-to-date about your company's social credit rating. 

 

Even though the requirements which companies must meet are well-defined in existing and new regulation, the challenge arises because there is currently no centralized database which provides a clear overview on these requirements. This means that knowing all requirements relevant for your company can be a time consuming and costly task. As a tax and financial advisory company, we specialize in helping Foreign Invest Enterprises be compliant with Chinese laws and regulations.

Company public credit profile review

It is crucial for foreign-invested enterprises to have a good understanding of compliance requirements and the statutory situation of their Chinese subsidiary.  Based on available ratings and blacklists, we provide a comprehensive overview the social credit rating of your Chinese subsidiary including any potential compliance risks and irregularities.

Because a company’s social credit rating will be affected by the rating of business partners, we would as well examine the social credit rating of your business partners, suppliers, clients etc. to identify potential threats you’re the credit rating of your Chinese subsidiary.

Our company public credit profile review includes:

- Report on company statutory situation including review on available data of Chinese subsidiary

- Review of major national blacklists

- Examination of relevant company ratings

- Third-party public credit profiles review

- ...

Company financial review

We are specialized to conduct a review of a Chinese subsidiary's accounting and internal financial processes to identify potential hazards and compliance issues which directly affect your social credit score. The aim of such a review would be to achieve more transparency and make sure compliance is achieved at all time.

 

Such a company financial review could include:

- Review the local financial report in all material aspects, in accordance with the applicable financial framework.

- Review of a selection of sample transactions (revenue, costs, expenses, assets, AR AP) for accuracy and effectiveness.

- Review whether special transactions (i.e. to a related party or overseas payments) are booked correctly.

- Review declaration of VAT, CIT, and other relevant taxes (i.e. surtaxes and withholding taxes).

- Review IIT, Social Security and Housing Fund declarations.

- ...

Credit restorations

Upon discovery of low social credit scores or blacklisting, our team helps to rectify outstanding compliance issues and supports to apply for credit restoration with relevant authorities.