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.
The screenshot of the document from the Chinese official media CNR.
From November 5th, anyone that knows accounting can work in it, even a fresh graduate from university, without any experience nor certification.
This low threshold contains a big risk — accountants without experience can easily make errors in accounting, auditing, and tax declarations of different entities.
Above are six types of entities; most foreigners register as 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.
The accountant has to balance a few factors:
Personal income tax records serve as a necessary document for the 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 his work, where the more you pay, the more convincing of your competence, which then, in turn, helps for the application of the work visa extension.
Corporate income tax records based on the calculation of a company’s revenues serves as a supportive document for the company to earn more seats to legally employ foreign staff, and it is helpful for making invitation letters for business visas.
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 the coming work visa extension.
Chinese government gives support by deducting tax for small-scale companies, an accountant should consider this factor when making tax declaration, helps your business in this way.
It is totally ok to feel confused about the Chinese work visa system, the policy is complex and requirements on paying tax and social insurance have constant changes.
An experienced accounting team, that knows accounting work and immigration policy could help you.
There is a lot of risk in not using an experienced accountant. If an accountant doesn’t have a Certificate of Accounting Professional, then an accountant who owns CPA, Foreign Accounting Professional Certificate or any other certificates are generally recognized by authoritative departments as more acceptable and reliable.
The threshold of the qualification for any agent to do accounting.
A membership recognized by a Chinese formal accounting organization.
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 an export tax refund.
To avoid any tax problem for your company, which will affect your company’s business and the Chinese work visa residence of foreign staff, you should pay attention to the following:
Not declare tax on time
No tax declaration
Attaching importance to Fapiao
No annual inspection
Apart from annual, seasonal and monthly reporting requirements, the tax bureau also has vast investigation powers once the large discrepancy is 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.
Complicated enough? You deserve service from a qualified accounting team! We simplify each step and work to be more effective and efficient.