Tax Planning and Tax Compliance Advisory in China

Business-Model Alignment

Review how the registered business scope, operational model, contracts and transaction flow may affect tax considerations.

• Actual-activity review
• Transaction-flow discussion
• Post-registration structure check

Record & Invoice Consistency

Help identify whether invoices, vouchers, contracts and accounting records appear consistent with the underlying transaction.

• Invoice and voucher reminders
• Supporting-document review
• Filing consistency discussion

Cross-Border Considerations

Provide preliminary guidance for overseas service fees, royalties, interest, dividends and other cross-border payment arrangements.

• Withholding tax reminders
• Payment-document checklist
• Transaction-substance review

Tax Risk Identification

Help identify potential tax and compliance issues for attention based on the company’s actual circumstances and available records.

• Tax-status review
• Potential issue reminders
• Practical next-step discussion

Ownership & Operating Model

Consider the company’s ownership structure, registered business scope and actual operational model as relevant background for a review.

Transaction Flow

Map major sales, purchase, service and payment flows to identify questions that may need further tax consideration.

Contract & Documentation Review

Review whether major contracts, invoices, vouchers and accounting records reasonably support the transaction substance.

Post-Registration Review

Support a structured check after company formation as actual activities, teams and transaction patterns become clearer.

VAT Treatment Review

Discuss VAT-related considerations in relation to the company’s actual sales, purchases, invoices and operating model.

Corporate Income Tax Considerations

Review income, costs and supporting records to identify corporate income tax matters that may need attention.

Expense Deductibility Reminders

Provide reminders that expense treatment is subject to transaction substance, valid invoices and supporting documents.

Invoice & Voucher Compliance

Help organize a discussion around invoice, contract and voucher consistency in the context of actual business activities.

Related-Party Transaction Review

Discuss the nature, counterparties and supporting documents of relevant related-party transactions.

Transfer Pricing Awareness

Provide general reminders about transfer pricing documentation and the need for arrangements to reflect transaction substance.

Agreement & Invoice Consistency

Help identify whether contracts, invoicing and accounting descriptions require closer coordination.

Ongoing Compliance Reminders

Support periodic consideration as transaction volume, counterparties or business activities change.

Tax Status Review

Review available tax registration and tax status information in light of the company’s current activities.

Filing Consistency Review

Help identify points that may warrant reconciliation between tax filing records and accounting information.

Compliance Issue Reminders

Flag potential issues for attention based on actual records; final tax treatment is not determined by this review.

Action-Oriented Summary

Provide a clear discussion of information that may need to be organized, clarified or monitored going forward.

Tax Burden Review

Discuss how tax considerations relate to the current business model, costs, invoices and available supporting documents.

Structure Optimization Discussion

Consider potential process or structure questions subject to the company’s circumstances and applicable tax regulations.

Compliance Planning

Help connect operational records, contract terms and accounting routines with relevant tax compliance reminders.

No Promised Outcome

No specific tax result, tax reduction or tax saving is guaranteed. Final treatment depends on the company’s actual circumstances.

Monthly Record Coordination

Use relevant bookkeeping records as part of the factual background for a preliminary tax review.

Ongoing Tax Reminders

Maintain a practical reminder process when operations, payments or transaction structures change.

Post-Registration Follow-Up

Review the tax structure after a company begins actual operations or adds new business activities.

Actual-Activity Principle

Tax and accounting work should be based on actual activities, valid invoices, contracts, vouchers and accounting records.

Company Background

• Business license and tax status information
• Ownership structure
• Registered business scope
• Business-model overview

Transaction Documents

• Major contracts and invoice samples
• Voucher and payment-support records
• Cross-border payment arrangements
• Related-party transaction information

Accounting & Filing Records

• Accounting reports
• Tax filing records
• Payroll and employee information
• Relevant internal process descriptions

Existing Notices & Plans

• Existing tax authority notices, if any
• Planned dividends or service fees
• Planned financing or royalties
• Expansion or restructuring plans

Use Valid Supporting Records

Tax considerations should be supported by valid invoices, contracts, vouchers and accounting records where applicable.

Reflect the Actual Transaction

Contracts, invoices and accounting descriptions should reflect the substance of the company’s actual business activities.

Review Before Key Changes

Consider a preliminary review before major cross-border payments, dividend distribution or material business-model changes.

Final Treatment Can Vary

Final tax treatment depends on applicable regulations, the company’s tax status, transaction facts and tax authority requirements.

What is tax planning for a foreign-invested company in China?

Compliant tax planning reviews the company’s business model, transaction flow, contracts, invoices, cost structure, tax status and filing arrangements under applicable tax regulations.

When should a company review its tax structure?

A review may be useful before registration, after business-model changes, before cross-border payments or dividends, when adding services, or when related-party transactions increase. Not every situation requires restructuring.

Can you support VAT, corporate income tax, and cross-border payment tax considerations?

We can provide preliminary review and coordination for VAT, corporate income tax, withholding tax, service fees, royalties, interest, dividends and related-party transactions, depending on the actual transaction.

What information is usually needed for a preliminary tax review?

Depending on the scope, useful information may include the business license, ownership structure, business model, contracts, invoices, accounting reports, filing records and cross-border or related-party transaction information.

Can a specific tax saving or tax result be guaranteed?

No. Tax treatment depends on actual business activities, transaction substance, contracts, invoices, accounting records, tax status, applicable regulations and tax authority requirements. No specific tax result, tax reduction or tax saving is guaranteed.