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Taxation and Annual Check
Dialogue 1
-How is a fiscal year calculated?
-From January to December 31,in the Gregorian calendar.
-Is the profit net after paying the income tax?
-Not exactly.It also includes the reserve fund,reward to workers and welfare fund.
-What kind of language should be used for accounting statements?
-In Chinese.Those written in foreign languages should also be translated into Chinese.
-May our own accountant clear the accounting statements?
-You'd invite a Chinese certified accountant to check them and present a report.
Dialogue 2
-We want to know something more about paying taxes.
-Foreign companies should pay taxes according to Chinese laws and regulations.Employees in foreign companies also have to pay income tax.
-Which part is tax-free?
-Some imported goods are tax-free,such as the machinery and equipment used as investing capitals and the raw materials imported for producing export products.
-Oh,I see.Thank you very much.
-It's my pleasure.
Dialogue 3
-Could our company receive and spend foreign exchange freely?
-First,you have to open an account in a bank that deals in foreign exchange business in China.The bank would supervise the receipts and expenditures.
-Can we change foreign exchanges for selling our products in China?
-If we're in urgent need of them that can also subsitute import products,you can change foreign exchange with approval after Chinese foreign exchange authorities.
-How about foreign workers' foreign exchange income?
-After paying the income tax according to Chinese laws,foreign workers' income can be remitted freely.
Dialogue 4
-We're willing to cooperate with the government,but we have to be inspected by seven or eight government departments at the very beginning of the year.We really can't afford it.
-We understand.To further improve the investment environment and relieve the enterprises'burden,we've decided to carry on a combined annual inspection.
-That's wonderful.Does it include the Customs Department?
-The Customs will participate in it next year.Before that,the Customs annual inspection should be conducted according to the current regulations.
-I see.We'll try our best to cooperate with you.
-Thank you.
Dialogue 5
-You'd be clear that the period of annual inspection dates from Jan.1st to Apr.30th.The inspection document should be submitted the responsible institutions before Mar.15th.
-Yes,we know.But last year our company's personnel change was so great that we could not prepare relative document in time.Now the inspection time is over,what should we do?
-This is really a headache.Usually the enterprises without being inspected would be criculated to all relative departments.
-Please do not.Our company has got a good reputation and achievement since being founded,and we're a big tax-payer in the city.Moreover,we're late only for three days.
-All right.I'll try to help you.
-You're very kind.Thank you very much.
-But be sure to be on time next time.
-We will.
Dialogue 6
-Please submit your inspection report,your license duplicate,balance sheet,profit and loss account and audit report.
-Here they are.We've made them in order.
-Why is the name you used not consistent with the approved name?
-Because we've just changed the name of our company and haven't registered in your document.
-Then you must register it in our department within 10 days.Otherwise,you'll be fined RMB 10,000~100,000.
-We'll do that immediately.Are other documents OK?
-We have to check them further.