Every Chinese company must file VAT and surtax returns monthly or quarterly, individual income tax monthly, and corporate income tax plus annual reports each year — regardless of revenue. Small-scale VAT taxpayers pay 1–3% on invoiced revenue; the standard corporate income tax rate is 25%, with reduced rates for qualifying small low-profit companies.
The filing calendar
Filings are tied to the tax bureau's electronic system and the deadline is fixed: the 15th of the following month, extended when it falls on a holiday. There is no grace period in practice — a late filing triggers a penalty and, more importantly, a mark on the company's tax credit rating that affects invoicing limits and bank applications.
Even a dormant company with zero revenue must file. This is the single most common and most avoidable failure we see in foreign-owned entities whose founders assumed “no business means no filing”.
What we need from you each month
- Bank statements for every account, including the foreign currency account
- Sales and purchase invoices issued or received, in electronic or paper form
- Payroll changes, if you employ staff
- Contracts for any cross-border payment, so withholding tax can be assessed
Everything else — vouchers, ledgers, the tax returns and the annual reports — we prepare. You receive a monthly pack with the returns filed and the tax position explained in plain English.
Tax rates that actually apply
Small-scale VAT taxpayers are charged 1% or 3% on invoiced revenue, depending on the current relief policy, with a quarterly exemption threshold for small amounts. General taxpayers offset input VAT against output VAT and need proper invoices for every purchase. Corporate income tax is 25% standard; qualifying small low-profit enterprises benefit from an effective rate of 5% on the first portion of taxable profit.
Recurring filing obligations
| Filing | Frequency | Deadline |
|---|---|---|
| VAT and surcharges | Monthly or quarterly | 15th of the following period |
| Individual income tax | Monthly | 15th of the following month |
| Corporate income tax prepayment | Quarterly | 15th of the following quarter |
| Annual corporate income tax | Annually | 31 May of the following year |
| Annual market-regulator report | Annually | 30 June of the following year |
Frequently asked
Can I keep my own accounting software?
You can, and for groups with an existing ERP it is often sensible. The constraint is that statutory filings must be made in the format the tax bureau's system accepts, and Chinese-language vouchers and fapiao records must be retained. Most foreign-owned SMEs have us run the statutory books and use their own system for management reporting.
What is a fapiao and why does it matter?
A fapiao is the official tax invoice. Mainland customers usually cannot deduct an expense without one, so they will ask for it before paying. Issuing fapiao requires the correct scope and taxpayer status, and the limit on how much you can issue is tied to your tax credit rating — which is why filing discipline matters commercially, not just legally.
What happens if I file late?
A penalty is assessed per filing, typically a few hundred RMB for a first offence, plus a late-payment surcharge on any tax due. The bigger cost is the tax credit rating downgrade, which reduces the monthly fapiao quota and makes bank applications harder. Repeated failures can lead to the entity being flagged as abnormal.
Not sure which route applies to you?
Tell us what you are trying to do. The first call is a feasibility check, not a sales pitch.