A Guide to Accounting and Audit in China 2024 – New Publication from China Briefing

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A Quick Guide to Accounting and Audit in China 2024 (2nd Edition), the latest publication from China Briefing and Dezan Shira & Associates, is out now and available for download through the Asia Briefing Publication Store.

The start of a new year is a hectic time for foreign companies in China. To meet the various compliance deadlines scattered throughout the year, they need to begin the long and complicated process of financial reporting, months in advance. Failure to comply will risk them being hit with deteriorating credit, additional fines, and penalties, and such companies might not be able to remit their profits overseas.

With businesses operating in a growing volatile, unexpected, complex, and ambiguous (VUCA) world, financial health and compliance have become more important than ever. More attention should thus be given to the audit and compliance procedures to reveal unexpected irregularities or suboptimal business practices, discover eligibility for tax incentives that had not previously been captured, as well as maximize efficiency within the organization.

China Briefing’s A Quick Guide to Accounting and Audit in China 2024 (2nd Edition), produced in collaboration with the audit experts at Dezan Shira & Associates, aims to walk foreign businesses through the annual audit and compliance process from start to finish, in addition to introducing China’s accounting framework in a comparative context. We hope this guide helps your business add value to its annual statutory audit and compliance reporting in China.

The guide covers the following:

  • Chinese accounting standards
  • Annual audit in China
  • Annual compliance requirements in China

This practical and easy-to-understand guidebook will be of invaluable use to all executives involved in handling company finances concerning China, including:

  • Chief Executive Officers;
  • Chief Financial Officers; and
  • Accounting Managers.

In this year’s updated version of A Quick Guide to Accounting and Audit in China, there are notable changes that require your attention:

  • Recalibration of Business Environment Analysis: In light of China reopening its borders and easing COVID-19 restrictions at the beginning of 2023, the primary constraints for businesses have shifted. The pandemic is no longer the foremost challenge. However, with the Chinese economy’s uneven recovery, increasing geopolitical risks, and evolving tax and data compliance regimes both domestically and globally, companies now operate in a more complex environment. Consequently, we have removed specific considerations related to the COVID-19 pandemic from the guide and incorporated an analysis of the current business climate where necessary.
  • Introduction of Proposed Personal Information Protection Audit: 2023 witnessed significant advancements in business digitalization and the development of data laws. In August, the China Cybersecurity Administration proposed a new set of measures, mandating companies processing the personal information of individuals in China to undergo regular compliance audits. To provide a comprehensive overview, we have added a brief introduction to this proposed personal information protection audit in the “Other Types of Special Purpose Reviews” section.
  • Addition of Special Tax Investigation on Tax Avoidance Arrangements: As jurisdictions worldwide intensify efforts to safeguard their tax revenue, China is no exception. In cases of unjustifiable tax avoidance arrangements lacking economic substance, Chinese tax authorities may initiate special tax investigations. We have included a general overview of the special tax investigation process in the “Other Types of Special Purpose Reviews” section, along with practical suggestions.
  • Inclusion of Related Reading Materials: To enhance readers’ understanding of accounting and audit in China, we have incorporated multiple related reading materials into corresponding chapters. These additional resources provide background information or details on relevant topics, enabling readers to develop a more comprehensive understanding.

We hope this guide helps your business add value to its annual statutory audit and compliance reporting in China.

About Us

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Dezan Shira & Associates has offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, Dubai (UAE), and Russia, in addition to our trade research facilities along the Belt & Road Initiative. We also have partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh.