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Corporate Service China China Beijing Q&A Concerning Annual Compliances of Beijing Foreign Invested Enterprises
FAQChina Beijing Q&A Concerning Annual Compliances of Beijing Foreign Invested Enterprises
| Q： |
After a foreign invested enterprise (hereinafter referred to as “FIE”) is set up in Beijing, what are the annual compliances the “FIE” need to pay attention to? |
| A： |
The Beijing “FIE” needs to arrange tax filings of value-added tax (hereinafter referred to as “VAT” ) and its surcharges, enterprise income tax (hereinafter referred to as “EIT”) and individual income tax (hereinafter referred to as “IIT”) for its staff during each tax filing period, prepare annual audit report, arrange annual tax returns for “EIT” reconciliation and “Multiple-in-One” annual report with Beijing Administration for Market Regulation (hereinafter referred to as “BAMR”), which is formerly named as Beijing Administration for Industry and Commerce. |
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Q： |
When does our Beijing “FIE” need to declare and pay tax? |
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A： |
Newly established enterprises should go to the competent taxation bureau to complete tax registration information and tax category and rate verification procedures within 30 days after obtaining the business license, and then go through tax declaration as scheduled. For small scale taxpayers, “VAT” and its surcharges are usually declared quarterly, and the declaration period is January, April, July and October. For general taxpayer, “VAT” and its surcharges are usually declared on monthly basis and the declaration period is before the 15th day of each month; “EIT” is usually declared on quarterly basis no mater if the taxpayer is small scale or general taxpayers and the declaration period is January, April, July and October; “IIT” of employees is declared monthly and the declaration period is before the 15th day of each month. In case there are public holidays, the declaration period will be extended accordingly. |
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Q： |
Is it a must to arrange annual audit for our Beijing “FIE”? |
| A： |
No. However, as audit report is an objective evaluation of the performance and operation status of the company after a comprehensive review of financial revenues and expenditures and economic activities, it is often arranged based on the group’s internal request. Besides, the competent authority may also request this report under certain circumstances. Therefore, it is advised to get the audit of the previous year completed within April. |
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Q： |
What kind of materials are required to be provided by the Beijing “FIE” for annual audit? |
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A： |
The audit required documents mainly include:
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| Q： |
When does the Beijing “FIE” need to file annual report? |
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A： |
According to the "Circular of on Doing a Good Job in the Reform of Multiple-in-One Annual Report " released by the General Administration of Market Regulation, Ministry of Commerce and Administration for Foreign Exchange, “FIE” should submit “Multiple-in-One” annual reports to the registration authority from January 1 to June 30 each year. |
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Q： |
What materials are required for preparation and filing of the “Multiple-in-One” annual report? |
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A： |
The required documents mainly include:
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Q： |
Is there any penalty if annual report cannot be submitted on time? |
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A： |
If Beijing “FIE” fails to submit its annual report and gazette relevant information within the prescribed period, or if the information conceals the true situation or there are fraud in the report, the Beijing “FIE” will be moved into the list of abnormal operations according to the law; Those who have not fulfilled the publicity obligations within three years shall be moved into the list of serious illegal enterprises. The legal representatives and persons in charge of such enterprises shall not be legal representatives or persons in charge of other enterprises within three years. It is advisable to engage professionals like Kaizen to handle the annual report preparation and filing work. |
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Q： |
When does the Beijing “FIE” need to submit annual tax reconciliation of “EIT”? |
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A： |
Annual tax return of “EIT” must be filed to the competent tax authorities before May 31 each year for “FIE” registered in Beijing to do the annual tax reconciliation for the previous year. Difference between the audited tax payable and the actual tax paid will cause refund or repayment of tax. In case difference incurs, it is advisable to consult with tax professionals like Kaizen before submitting the annual tax return of “EIT”. |
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