{"id":996,"date":"2023-10-24T03:59:05","date_gmt":"2023-10-23T19:59:05","guid":{"rendered":"https:\/\/www.hiredchina.com\/articles\/2023\/10\/24\/china-just-cancelled-one-major-rule-and-its-shocking\/"},"modified":"2023-10-24T03:59:05","modified_gmt":"2023-10-23T19:59:05","slug":"china-just-cancelled-one-major-rule-and-its-shocking","status":"publish","type":"post","link":"https:\/\/www.hiredchina.com\/articles\/china-just-cancelled-one-major-rule-and-its-shocking\/","title":{"rendered":"China Just Cancelled One Major Rule And It’s Shocking…"},"content":{"rendered":"

The Certificate of Accounting Professional has been removed as a requirement for those who work in accounting. The decision was made at the recent 12th Standing Committee of the National People’s Congress on November 4th, and it went into effect just one<\/p><\/blockquote>\n

<\/h2>\n

The Certificate of Accounting Professional has been removed as a requirement for those who work in accounting. The decision was made at the recent 12th Standing Committee of the National People’s Congress on November 4th, and it went into effect just one day after.<\/p>\n

<\/p>\n

\"\u5fae\u4fe1\u56fe\u7247_20171113155225.jpg\"<\/p>\n

The screenshot of the document from Chinese official media CNR.<\/span><\/p>\n

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<\/p>\n

<\/span><\/strong>1 Why does the new accounting law matter you?<\/span><\/strong><\/p>\n

<\/span><\/strong><\/span>From November 5th, anyone that knows about <\/span>accounting can work in it, even a new university <\/span>graduate<\/span>, with or without any experience nor certification. <\/span><\/p>\n


<\/span><\/p>\n

This low threshold represents a big risk \u2014 accountants without experience can easily make errors in accounting, auditing, and tax declarations of different entities.<\/span><\/p>\n


<\/span><\/p>\n

\"\u5fae\u4fe1\u56fe\u7247_20171113155233.jpg\"<\/p>\n

Above are six types of entities; most foreigners register a WFOE or Export and Import Company to start a business in China. When foreigners are involved in a business, the “accounting rules” are different in China.<\/span><\/p>\n


<\/span><\/p>\n

The accountant has to balance a few factors:<\/span><\/p>\n<\/p>\n

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  • \n

    Accounting and tax declaration are different but connected. How much tax should foreign staff and the company pay for work visa extension?<\/span><\/p>\n<\/li>\n<\/ul>\n

    Personal income tax records serve as a necessary document for work visa application. The tax payment amount is based on the calculation of one’s salary. So, the tax payment record indirectly reflects one’s ability to work: the more you pay, the more convincing your competence, which then in turn helps your<\/p>\n

    application for a work visa extension.<\/p>\n

    <\/p>\n

    Corporate income tax records based on the calculation of a company’s revenues serves as a supportive document for the company to earn more space  to legally employ foreign staff, and is helpful when submitting invitation letters for business visas.<\/p>\n

    <\/p>\n

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      Declaring tax and paying tax are different, what is the best time to prepare these two for work visa extension?<\/span><\/p>\n<\/li>\n


    • <\/span><\/li>\n<\/ul>\n

      For A company generally involved in different types of tax, the time to declare and to pay are different, both should be taken into consideration for upcoming work visa extension.<\/p>\n

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        Small companies whose annual tax payment is no more than CNY500,000 and <\/strong>total assets not more than CNY10 million,<\/strong> can also enjoy this privilege from the Chinese government.<\/span><\/p>\n<\/li>\n<\/ul>\n

        Chinese government gives support by deducting tax for small-scale companies, A good accountant will consider this factor when making tax declaration and helps your business in this way.<\/p>\n

        <\/p>\n

        2 <\/span><\/strong>Don’t take a risk on unqualified accounts!<\/span><\/strong><\/span><\/font><\/p>\n

        It is totally ok to feel confused about the Chinese work visa system; the policy is complex and requirements for paying tax and social insurance are constantly changing.
        <\/span><\/p>\n

        An experienced accounting team that knows accounting work and immigration policies can help.<\/span><\/p>\n


        <\/span><\/p>\n

        There is a lot of risk in not using an experienced accountant. If an accountant doesn\u2019t have a Certificate of Accounting Professional<\/span>, then an accountant who holds a CPA<\/span>, Foreign Accounting Professional Certificate<\/span> or any other certificates are generally recognized as more by acceptable and reliable.<\/span><\/span><\/p>\n


        <\/span><\/span><\/p>\n<\/p>\n

        \"\u5fae\u4fe1\u56fe\u7247_20171113155235.jpg\"<\/p>\n

        <\/p>\n

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          Accounting Certificate<\/span><\/strong><\/span><\/p>\n<\/li>\n<\/ul>\n

          The minimum qualification for any agent to do accounting.<\/span><\/p>\n

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          • \n

            Member of Chinese Accounting Chamber<\/span><\/strong><\/span><\/p>\n<\/li>\n<\/ul>\n

            A membership recognized by a formal Chinese <\/span>accounting organization.<\/span><\/p>\n

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            • \n

              Foreign Accounting Professional Certificate <\/span><\/strong><\/span><\/p>\n<\/li>\n<\/ul>\n

              Foreign accounting is mainly engaged in overseas accounting business. If you run export business, an accountant with Foreign Accounting Professional Certificate can help you apply for export tax refund.<\/span><\/p>\n


              <\/span><\/p>\n

              3<\/span><\/strong> situations that will raise government’s attention to check\uff01<\/span><\/strong><\/p>\n

              To avoid any tax problem for your company, which will affect your company’s business and the work visa of foreign staff, pay attention to the following:<\/span><\/p>\n


              <\/span><\/p>\n

              Not declare tax in time<\/strong><\/span><\/p>\n

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              • \n

                One should declare taxes within a limited time frame, according to the tax bureau. Declaring tax doesn’t mean paying taxes, yet this step should be finished in a timely manner.<\/span><\/p>\n<\/li>\n<\/ul>\n

                <\/strong><\/span><\/p>\n

                No tax declaration<\/span><\/strong><\/span><\/p>\n

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                  For small-scale VAT taxpayers, whose monthly sales amount is not more than 30,000RMB, are free from charging VAT tax. They still need to declare the taxes!<\/span><\/p>\n<\/p>\n<\/li>\n<\/ul>\n

                  Attaching importance to Fapiao<\/span><\/strong><\/span><\/p>\n

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                    Fapiao is important for tax deductions and accounting. No matter if it is for purchases or selling, both will need Fapiao for business activities in China.<\/span><\/p>\n<\/li>\n<\/ul>\n

                    No annual inspection<\/strong><\/span><\/p>\n

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                      It includes submitting documents to three departments of Chinese governments, State Administration for Industry & Commerce for People’s Republic of China, State Administration of Taxation, China Customs. If a company skips their annual inspection, any of these three departments may come to you.<\/span><\/p>\n<\/li>\n<\/ul>\n

                      Apart from annual, seasonal and monthly reporting requirements, the tax bureau also has vast investigation powers once large discrepancy are shown on data or a company is reported for financial misbehavior. You can only imagine what being audited by the Tax Bureau of China is like.<\/span><\/p>\n


                      <\/span><\/strong><\/strong><\/span><\/p>\n

                      Complicated enough? You deserve service from a qualified accounting team! We simplify each step and work to be more effective and efficient.<\/span><\/strong><\/span><\/p>\n<\/p>\n

                      \"\u5fae\u4fe1\u56fe\u7247_20171113155240.jpg\"<\/p>\n

                      \"\u5fae\u4fe1\u56fe\u7247_20171113155258.jpg\"<\/p>\n

                      \"\u5fae\u4fe1\u56fe\u7247_20171113155248.jpg\"<\/p>\n

                      Source:HiTouch<\/p>\n

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                      \"gic.jpg\"<\/p>\n","protected":false},"excerpt":{"rendered":"The Certificate of Accounting Professional has been removed as a requirement for those who work in accounting. The decision was made at the recent 12th Standing Committee of the National …","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-996","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/comments?post=996"}],"version-history":[{"count":0,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/posts\/996\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/media?parent=996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/categories?post=996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.hiredchina.com\/articles\/wp-json\/wp\/v2\/tags?post=996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}