Want to grow your business into a global behemoth brand? The best solution is expanding offshore, and China is an excellent jurisdiction. It is the most populous country on the globe, and what makes it even more appealing is that it shares borders with 14 jurisdictions. Therefore, opening a business in China puts you at the heart of Asia-Pacific. So, what plans do you have for a market of more than two billion people?
As you expand into China, it is very important to ensure you get tax and accounting matters right. Well, it is never easy for most companies because their investors and management are busy following core activities, such as product development and marketing. This is why you need to work with tax and accounting services in China. Keep reading as we reveal the most important.
A Brief about China’s Economy
For companies that have just entered or planning to join the Chinese market, it is important to understand the following numbers.
- The population of China is estimated at 1.41 billion according to the 2020 estimates.
- China’s GDP stands at US$18.46 trillion (2022 estimates).
- The country’s GDP growth rates in the last four years, 2018, 2019, 2021, and 2022 are 6.7%, 6.0%, 2.3%, and 8.5%, respectively.
- Services sector contributes 51.6% of the country’s GDP. The industry and agriculture come second and third, with 40.5% and 7.9%, respectively.
These numbers indicate a country that is overflowing with potential. What is more impressive is that there are so many opportunities in different areas. So, whether your business is in manufacturing, agriculture or hospitality, among others, you are sure of rapid growth. Government support is also outstanding, helping businesses to grow and become successful even faster.
Special Benefits of Using Tax and Accounting Services in China
There are a number of benefits that you can only enjoy by working with experts in tax and accounting matters. Here are the most notable:
Helps You to Comply with Different Tax Laws in China
China has a long list of laws that companies must comply with. Indeed, the country’s administration emphasises tax matters, and it is important to ensure everything is complied with. In addition to being many, these laws and policies are also changing regularly, making it challenging for businesses to comply with. For example, the VAT laws have been changed a number of times between 1984 and 2022.
Instead of worrying about tax laws, you should work with Fiducia tax and compliance experts in China. They will tell you which taxes you need to pay and accurately calculate them for you.
Makes it Easy to Chinese Accounting Standards
Most foreign companies coming to China usually find accounting a challenge because the country follows a different accounting system. Instead of using the International Financial Reporting Standards (IFRS), China uses the China Accounting Standards (CAS), which comes with significant differences. CAS comprises two main standards, the Accounting Standards for Business Enterprises (ASBE), which is commonly used by wholly foreign-owned enterprises (WFOEs), and the Accounting Standards for Small Business Enterprises (ASSBE).
The two accounting standards can greatly complicate matters, especially for those who try to handle everything on their own. The best way to go about this is by working with experts. They have been in the Chinese market for some time, have seen these new standards evolve, and can easily help your company to maintain its books correctly.
With time, the experts can even help your accounting staff to understand more about CAS for compliance. This is not all. Bringing on board some experts can help your business learn more about its operational challenges, enhance its strategies, and take advantage of every opportunity for growth. You can never go wrong with experts on your side.
No effort should be spared to ensure your business is compliant when it comes to tax matters. Therefore, bringing an expert in tax and accounting services in China can be an excellent method for your business. With Fiducia, one of the best firms of experts in China, you are sure of keeping accounting-related costs low and having a helping hand that will guarantee success. Why risk it alone when an experienced expert is ready to assist?