Ask an Expert 2: Shanghai Lockdown – Tackling Companies’ Administrative Problems

In March, the Shanghai districts Pudong and Puxi applied lockdown measures to prevent the further spread of Covid 19 infections. For many enterprises in Shanghai, these lockdowns have been quite a challenge. While employees can work from home, there are certain procedures, especially for managing taxes, which are not that easy to complete from home-office. In order to decrease the pressure for enterprises, the Shanghai Taxation Bureau extended the tax declaration period in March and April to May 31. To further ease your company’s troubles, the tax experts of ECOVIS Ruide China and Ecovis Richard Hoffmann in Heidelberg will answer some of the most frequently asked questions and problems with tax procedures during the lockdown. Let’s have a look at some possible solutions and tips from our team!

1. Issuing Invoices Without a Tax-Controlled Printer

While we probably have an equivalent to the beloved office coffee machine at home, looking for a tax-controlled printer in the average living room might pose a challenge. If in the lockdown, company employees do not have access to their office’s tax-controlled printer, how can they issue invoices? Let’s ask an expert!

A good solution for this problem is to apply for online invoicing from home. In that way, invoices can be created online, be downloaded, and saved as a PDF. They can be printed later when it is possible to return to the office. Although the issue of invoice printing is not solved itself, this procedure can help companies to keep track of their operating income data. In that way, they also avoid accumulating work on invoices when they return.

We recommend companies to apply for

1）an electronic VAT invoice (for newly established enterprises)

2）an electronic ordinary invoice (for long-established enterprises)

2. No Official Seal?

There is another issue that companies are facing since the lockdown: how can they get an official seal for the documents that require it?

The best solution to this, according to the insider knowledge of the Shanghai office of ECOVIS Ruide, is to apply for an electronic official seal. Although the electronic seal procedure is simple, convenient, and efficient, it is not widely known. Therefore, we highly recommend companies to apply for one.

3. Ukey Missing!

The next device that might be missing in home office is the tax UKey. Without the UKey, companies cannot log into the e-tax system. How can they do their tax declaration and handle the annual tax settlement without the UKey?

We advise companies in this situation to apply for an electronic business license. With this license, companies can log into the e-tax platform. It enables them to handle their tax declaration, tax changing, and enterprise annual tax settlement, as well as other services online.

A legal person can download and use the e-business license through smart terminals such as mobile phones, or WeChat and Alipay’s e-business license apps. Through them, they can download or print, verify and log into the system. Good news is that after receiving the electronic business license, you can also authorize others to hold and use it.

4. When Computers Can’t be Taken Home

Depending on the company and its equipment, it might be difficult to take office computers home. This poses a severe problem for home-office solutions during the lockdown. How can companies operate from home-office if computers can’t be taken home?

Ecovis’ solution to this issue is to install a system on the company computer which allows employees to operate it remotely. No need to bring the company’s device home!

In our series “Ask an Expert”, we share tips and tricks on common questions and issues that our expert team encounters while supporting our clients in a bite-sized, concise format. Do you have further questions on tax procedures during the lockdown that were not covered yet, or do you need details and help with the application processes? Don’t hesitate to contact Ecovis Richard Hoffmann in Heidelberg or the ECOVIS Ruide China team that will gladly assist you in any issues related to tax, accounting and legal advice.