The deadline for the Annual Audit in China is on the 31st<\/span><\/sup> of May. Although it seems there is still a long time until the deadline is due, there is an incredible huge amount of work that needs to be done before the annual audit reports can be handed in.<\/p>\n <\/p>\n The deadline for the Annual Audit in China is on the 31st<\/sup> of May. Although it seems there is still a long time until the deadline is due, there is an incredible huge amount of work that needs to be done before the annual audit reports can be handed in.<\/p>\n There are two reasons for which time should not be underestimated when preparing the annual audit and all required documents. First of all, the Chinese Tax Bureau takes the deadline serious and will not make any exceptions. Companies that can\u2019t manage to hand in their audit report in time will definitely face fines. Second, the preparation of all documents is a very time consuming task. Additionally, the company has to assign an authorized CPA firm in advance to prepare and finish the annual audit report.<\/p>\n Law requires the audit to be done by a Certified Public Accountant (CPA) because this ensures the compliance of all tax regulations. This can be seen as an advantage for both – the Tax Bureau as well as the company itself, since not being in compliance will result in penalties. The amount of the fines lies between 10,000 and 30,000 RMB for RO\u2019s and goes up to 200,000RMB for WFOEs. The second advantage of this requirement is the ensured tax efficiency for the company.<\/p>\n On the 31st<\/sup> of May is the deadline for handing in the reports of the following three different audits: 1. Statutory Annual Audit 2. Annual Foreign Currency Audit and 3. Annual Tax Audit and Clearance.<\/p>\n Statutory Annual Audit<\/p>\n Annual Foreign Currency Audit:<\/p>\n Annual Tax Audit & Clearance<\/p>\n\n
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