Once your business is registered, it is required to maintain proper accounting records in accordance to accounting standards in China and report taxes on a monthly, quarterly, and annual basis. Late submissions are subject to penalty and surcharges.

In Shanghai:
VAT (Value Added Tax): 3%, 6%, or 17%
EIT (Enterprise Income Tax): 20-25%
IIT (Individual Income Tax): 5%-45%

WFOE must register with the local tax authority for tax reporting method and applying for official invoice book which allows the WFOE to issue invoices to its’ clients within China and abroad. Our part time accountants assist business to in negotiating with local tax officers to use the proper tax reporting method. Our accountants will work closely with your business to prepare monthly and quarterly tax reports on your behalf.

Our tax specialists who are fully bilingual and have more than 15 years experience dealing with local Shanghai tax authorities. We believe that tax planning and business planning go hand in hand, and are dedicated to fully understanding your business so that we can better advise you on tax planning opportunities that increase efficiency and reduce tax burden. In China, it is essential to work with a team that has experience managing relationships with local tax authorities and can bring to your business all the benefits of the most updated tax policies.

Audit & Assurance

Orlocity specializes in audit and assurance services for growing SMEs. Foreign owned enterprises are required to perform an annual audit in order to fulfill the requirements of the local tax authority. Our teams are geared towards customer satisfaction and to enhance our relationship with our customers so the journey to assist businesses will run as efficiently and effectively as possible.

Additionally we offer comprehensive services for both local and overseas reporting requirements including restatement of accounts for GAAP and IAS compliance, Business Performance Assessments (BPA), and we are also authorized to issue audit reports on financial statements.

Our team will work closely with you to understand your business and vision. We review every aspect of your internal and external factors, from systems and internal processes to environmental factors, allowing our professionals to precisely assess the associated risks and form a definitive solution to seize opportunities for our clients. This careful process is the basis of our recommendations for improving and strengthening your business operations. Conclusively we provide a convenient internal audit letter of observations and recommendations for improving and strengthening the financial and business operations of our clients.

Accounting & Bookkeeping

With China’s fast growing accounting sector, it is challenging for many firms to keep on top of new legislation and accounting standards. At Orlocity, we have local knowledge and relationships to serve both local and multinational clients. In addition, we seek to add real value to your business, working closely with you to provide quality management accounting information on top of regular Accounting & Bookkeeping services that are required to uphold basic accounting laws and regulations.

Accounting & Bookkeeping standards in China differ from one country to another, even thought most countries GAAP have been modified to be in compliance or similar to International Financial Reporting Standards (IFRS). However they are still many countries that operate within their own GAAP regulations. At Orlocity, with our years of experience, we are familiar with IFRS, US GAAP and CAS and others individual countries GAAP. Outsourcing your accounting and bookkeeping to Orlocity gives you access to our professional and long standing accounting team. We enable you to save money through an efficient and specialized service that is fast, accurate, clear and concise. We can offer a flexible, tailor-made solution to any developing issue – providing the very foundations on which to grow a successful business. Orlocity can assist you with your Accounting & Bookkeeping, Outsourcing Services, Budgeting & Forecasting, Financial Statement Preparation and Head Office Reporting.

Every accounting and bookkeeping GAAP has its own standards and sometimes allows for more than one way to report. For example, there are different rules for impairment of assets, inventory costs & reversal, capitalization of development costs, depreciation expenses, interest & dividend expenses and asset valuation. Those different methods can have an impact on your business ratios, profitability and tax burden. Orlocity’s team have strong knowledge of these differences in reporting in regards of your country standards and help you choose the method that is the most profitable for you businesses.

China Payroll Services

In January 2008, China’s new Labour Contract Law came into force. The result of this is that employing staff in China is becoming more and more complicated, even to a greater extent if you operate a nationwide business. There are regulations for wages that all have specific terms, which consider creating mandatory welfare payments along with an employee’s education level that are themselves regionally dependent. China payroll services provided by Orlocity can provide companies with the security that they are operating the HR function of their business compliantly.

Workers’ wages generally include pay on time basis, pay on piecework basis, bonuses, allowances and subsidies, over-time pay, and other payment for special duties. The following must be provided, but not included in an employee’s wages:
• Social insurance and welfare benefits, such as bereavement, poverty relief, and paid by the employer to individual staff
• Labour protection-related benefits, such as allowances on: work clothes, detoxification agents and refreshing drinks
• Other labour remuneration not listed in the total payroll according to relevant regulations.

The Labour Law provides a minimum wage requirement, which is determined at a provincial level. The Regulations on Minimum Wages require all provinces, autonomous regions, and directly administered municipalities to set minimum wage standards and report them to the Ministry. Employers must also deduct and withhold employee individual income tax, social security and related payments.

Adding another layer of complexity is constant revision of the minimum wage level and welfare by the Chinese Government on an almost yearly basis. In light of the new labor law, demand for professional, in-country payroll services is growing. Orlocity is here to help you with this. We offer professional, quick and highly reliable accounting practices to take away the stress of following payroll regulation thus allowing you to focus on sales and growth. Our associates can help you with:

• China Payroll Processing Setup
• Hiring Expatriate Employees in China
• Hiring Local Employees in China
• Accounting & Bookkeeping in China

Valuation & DD Services

Business valuation & DD services are used to assess the economic value of an owner’s interest in a business by estimating what a company is worth in terms of assets and liabilities. Valuation services may be necessary for investment analysis, capital budgeting and mergers and acquisitions, so are particularly relevant to shareholders, business partners and investors.

The scope of the due diligence review, which is always determined in conjunction with you, depends on the size and scale of the transaction and the surrounding risks. Our due diligence service focuses on the most critical elements of transactions, including:

• identifying and quantifying industry and deal-specific risks and opportunities.
• Evaluating quality and reasonableness of historical and projected earnings and cash flows assessing quality of assets.
• Identifying hidden costs, commitments and contingencies
• Identifying and quantifying tax exposures.
• Identifying and quantifying liabilities that can be deal breakers; and
• Highlighting issues likely to affect the purchase price or contract conditions. Practitioners in our due diligence services group are seasoned accounting and tax specialists who provide value-added services to corporate and private equity clients on a daily basis and have a deep understanding of China's unique challenges such as:
• Disparity in accounting principles and quality of financial information.
• Lax internal control, transparency and corporate governance standards.
• Proliferation of related party transactions; and
• Complex and evolving tax rules and regulations.