Invited by DCCC, Lee & Lee Associates hosted a seminar on “Tax update and challenges in China” for DCCC members in Wuqing of Tianjin.
The overall tax environment has been changing rapidly including below aspects. All top management, accounting and tax practitioners should be aware of those changes so that preventive action can be taken.
1. Introduction of 7 certificates into one: The business license without the uniform social credit code will be deemed as invalid since 2018.
2. The potential tax risk and background of Golden tax system – Phase 3: The tax bureau’s large data collection makes it impossible for taxpayers to issue fake invoices, evade tax or do other illegal operations.
3. Influence of gradually improved credit system: Class A enterprises will enjoy good tax environment, while Class D enterprises will be subject to a variety of strict management.
4. Nation-wide tax audit: Enterprises should improve their internal control of invoice management in a timely manner. They should keep track of various tax adjustment matters and make timely adjustment in accordance with the provisions of tax regulations so as to avoid potential back payments of taxes and overdue fines.
5. Clearing of long-term dormant companies: Enterprises that have not legally submitted annual report or have not declared taxes for two consecutive years would be urged to take action. They will be urged to correct first, and if there are serious issues, business license would be revoked.
The atmosphere of the seminar was very pleasant. Participants were actively involved in the discussion and asked lots of questions. This event was well received and appreciated by the DCCC and the Danish companies.