New Issue of China Briefing: Annual Compliance, License Renewals & Audit Procedures

Posted by Reading Time: 3 minutes

Jan. 7 – The new issue of China Briefing Magazine, titled Annual Compliance, License Renewals & Audit Procedures, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore through the months of January and February 2013.

In this issue, we discuss annual compliance requirements for China foreign-invested entities, with notes on regional differences and tips from experienced accountants and auditors. Many Western parent companies today are concerned by the perfunctory nature with which annual compliance procedures are carried out in China, and with good reason. Chinese audit reports roll into group audit reports, and thus it is imperative to have confidence in these figures. Furthermore, annual compliance procedures, when conducted with care, can tell stories about what’s going on behind the scenes in a company’s operations. We detail the full audit processes for representative offices, wholly foreign owned enterprises, and joint ventures in China.

In addition to company audits, expats in China must file their annual individual income tax (IIT) declarations for 2012 earnings. We discuss IIT liability in China (which depends on income source and time period spent in China), IIT rates and calculation methods (taking into account number of days spent in China), permissible tax deductions, and how working for a permanent establishment can change tax liabilities.

Finally, we look at the current U.S. Securities and Exchange Commission proceedings against the Chinese arms of the “Big Four” accounting firms from the perspective of SME foreign investors.

In this issue:

  • The Annual Compliance Process for China FIEs
  • Individual Income Tax Finalization for Expatriates
  • Current U.S. Securities and Exchange Proceedings

Annual Compliance, License Renewals & Audit Procedures is out now and immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.

For further details or to contact the firm, please email, visit, or download the company brochure.

You can stay up to date with the latest business and investment trends across China by subscribing to The China Advantage, our complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

An Introduction to Doing Business in China
Asia Briefing, in cooperation with its parent firm Dezan Shira & Associates, has just released this 40-page report introducing everything that a foreign investor should be familiar with when establishing and operating a business in China.

The Asia Tax Comparator
Here we discuss corporate income tax, value-added tax, business tax, goods and service tax, withholding tax, and individual income tax as these apply in China, India, and Vietnam, and in the popular holding company destinations of Hong Kong and Singapore. This includes tax rates, descriptions, incentives, and deadlines, as well as main FDI source countries/regions and industry-specific notes.