Do foreign-invested companies in China need to keep accounts in Chinese?

Yes. All entities registered in China must maintain accounts in RMB and in accordance with Chinese Accounting Standards (CAS) or the Accounting Standards for Business Enterprises (ASBE). Financial statements must be prepared in Chinese and may optionally include an English translation. Foreign-invested enterprises that report to overseas headquarters may also maintain parallel IFRS or US GAAP books.

What are the main tax obligations for a WFOE in China?

A Wholly Foreign-Owned Enterprise (WFOE) is subject to: Value-Added Tax (VAT) on revenue from sales or services; Corporate Income Tax (CIT) at a standard rate of 25% (15% for high-tech enterprises); monthly or quarterly VAT filing; and annual CIT settlement. Additional taxes include stamp duty, urban construction tax, and local education surcharges. Monthly filings are due within 15 days following each calendar month.

When does a company need a statutory audit in China?

Every company registered in China, including WFOEs, must undergo a mandatory annual statutory audit carried out by a licensed Chinese CPA firm. The audited financial statements are required for the annual tax settlement (due May 31), annual reporting to the Administration of Market Regulation (AMR), and profit remittance abroad.

What is a Virtual CFO service in China?

A Virtual CFO (vCFO) service provides a foreign-invested business with on-demand senior financial management, including budgeting, cash flow planning, reporting to headquarters, banking relationships, and regulatory liaison, without the cost of a full-time Chief Financial Officer. It is common among SMEs, newly established WFOEs, and companies testing a market before committing to a large local team.

China Accounting Services for Foreign-Invested Firms

Accounting and finance capabilities

Monthly bookkeeping

Statutory ledgers must be maintained on an accrual basis in Chinese, with RMB as the reporting currency. Monthly closes feed VAT filings, CIT prepayments, and the year-end audit. Books and supporting records must be retained for at least 15 years.

Acadia delivers journal entry preparation, bank reconciliation, fapiao matching (including e-fapiao), management reporting in English, and coordination with your China-registered CPA firm ahead of the annual audit.

View monthly bookkeeping

Best for

WFOEs and JVs needing reliable monthly CAS books and VAT/CIT filing support
Companies consolidating China results to IFRS or US GAAP at headquarters
Entities transitioning from in-house finance teams or legacy ERP setups

Key considerations

Monthly VAT and quarterly CIT deadlines leave little room for backlogged entries
Fapiao reconciliation errors are a common audit and tax risk trigger

Virtual CFO services

A virtual CFO provides senior finance leadership, including cash flow planning, budgeting, HQ reporting, banking liaison, and regulatory coordination, without the cost of a full-time local CFO.

Common among newly established WFOEs, SMEs, and regional subsidiaries, vCFO support bridges the gap between day-to-day bookkeeping and the strategic finance oversight headquarters expects.

View virtual CFO services

Best for

New market entrants building finance function from scratch
Subsidiaries without a locally based CFO or financial controller
Interim cover during leadership transitions or pre-audit preparation

Key considerations

Scope should align with entity size, reporting cadence, and banking complexity
Works best when integrated with monthly bookkeeping and tax delivery

Shared CFO services

Shared CFO is a cost-effective model for companies that need experienced China finance leadership on a part-time or shared basis, covering reporting, treasury oversight, and cross-border coordination.

Unlike project-based advisory, shared CFO embeds into your operating rhythm: board packs, KPI dashboards, lender relationships, and liaison with auditors and tax authorities.

View shared CFO services

Best for

Mid-sized FIEs with growing transaction volume but not full-time CFO headcount
Multi-entity groups needing consistent finance governance across China subsidiaries
WFOEs preparing for expansion, refinancing, or profit repatriation planning

Key considerations

Define decision rights between HQ finance and the shared CFO upfront
Ensure access to banking, ERP, and audit working papers is structured early

China finance management

Finance management goes beyond compliance, integrating business and finance processes, designing order-to-cash SOPs, and strengthening internal controls to reduce operational and financial risk.

We help foreign-invested companies align revenue recognition, cost allocation, and approval workflows with how the business actually operates, so reporting reflects reality and audits run smoothly.

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Best for

Companies scaling headcount or transaction volume without proportional finance controls
Operations with complex billing, reimbursement, or intercompany flows
Teams preparing for ERP localization or process redesign

Key considerations

Process gaps often surface first at audit or during VAT inspections
SOP design should account for Chinese invoice and approval conventions

Bank account opening

Opening a corporate bank account is one of the first operational milestones after entity registration. Banks require a complete WFOE documentation pack, verified business scope, and often in-person verification. Timelines vary by city and bank tier.

Acadia coordinates fast-track programmes where available, prepares document packs, and liaises with local and international banks so treasury setup does not delay payroll, VAT registration, or supplier payments.

View bank account opening

Best for

Newly registered WFOEs opening their first RMB or foreign currency accounts
Companies adding branch or subsidiary accounts in additional cities
Groups consolidating banking relationships after restructuring

Key considerations

Account scope must align with business licence categories and SAFE rules
Some banks require minimum balances or ongoing activity thresholds

China GAAP conversion

Chinese statutory accounts follow CAS (converged with IFRS in many areas but not identical). Headquarters reporting under IFRS or US GAAP requires systematic mapping, conversion memos, and recurring adjustment schedules.

We help FIEs document book-tax and book-group differences, prepare conversion workpapers, and maintain reconciliation files that satisfy both local auditors and group consolidation teams.

View GAAP conversion

Best for

Subsidiaries reporting into IFRS or US GAAP group consolidation
Companies preparing for IPO, refinancing, or cross-border M&A disclosure
Entities with recurring fair value, lease, or revenue recognition differences

Key considerations

Conversion design should be agreed before year-end audit fieldwork
MOF and group reporting deadlines may not align. Plan cut-off dates early

China tax accounting

China tax compliance spans CIT, VAT, IIT withholding, stamp duty, and surcharges, plus cross-border withholding, transfer pricing documentation, and incentive qualification in the Greater Bay Area or Hainan where applicable.

Acadia supports monthly and annual filings, authority liaison, equalization studies, refund applications, and ad-hoc transaction advice so tax positions are defensible before an audit or inspection.

View tax accounting

Best for

FIEs with cross-border service fees, royalties, or intercompany charges
Companies evaluating high-tech enterprise or regional incentive eligibility
Groups needing transfer pricing local files and benchmarking support

Key considerations

Book-tax differences must be tracked for annual CIT reconciliation
Golden Tax data matching increases scrutiny on payroll and invoice alignment

Annual statutory audit

Every company in China must undergo an annual statutory audit by a licensed Chinese CPA firm. Audited financial statements are required for CIT settlement (due May 31), AMR annual reporting, and profit repatriation applications.

We prepare audit schedules, reconcile GAAP differences, respond to auditor queries, and coordinate management letter follow-ups so the audit completes on time without disrupting operations.

View annual statutory audit

Best for

WFOEs approaching first full-year audit after establishment
Companies with prior audit qualifications or significant book-tax adjustments
Entities planning dividend distribution or SAFE outbound remittance

Key considerations

Audit fieldwork should start well before the fiscal year-end close
Incomplete fapiao or social insurance records commonly delay sign-off

China Accounting Compliance Calendar

Key recurring deadlines for WFOEs and other foreign-invested enterprises.

Frequency	Filing / Obligation	Deadline	Notes
Monthly	VAT declaration & payment	15th of following month	General taxpayers file online; small-scale taxpayers may file quarterly
Monthly	Individual Income Tax (IIT) withholding	15th of following month	Employer withholds and remits on behalf of employees
Monthly	Stamp duty filing	15th of following month	Required for contracts, business licences, books of account
Monthly	Bookkeeping & management accounts	Within month	Required for statutory records; basis for all tax filings
Quarterly	CIT provisional declaration	Within 15 days of quarter end	Based on actual or deemed-profit method; Q1: Apr 15, Q2: Jul 15, Q3: Oct 15
Quarterly	Financial statements to authorities	Within 15 days of quarter end	Some cities require quarterly balance sheet + P&L submission
Annual	CIT annual settlement (CIT reconciliation)	By 31 May	Reconcile actual vs. provisional CIT; file with tax bureau
Annual	Statutory audit by licensed CPA firm	By 30 April (for May CIT filing)	Required for all FIEs; basis for profit remittance and AMR filing
Annual	Annual AMR reporting	By 30 June	File audited accounts and annual report with Administration for Market Regulation
Annual	IIT annual self-declaration (employees)	March 1 – June 30	Required for employees earning >RMB 120,000/year or with multiple income sources

Deadlines may vary by city or filing type. Late filing attracts daily penalties of 0.05% of outstanding tax plus potential fines. See our tax accounting service →

Frequently Asked Questions

Do foreign-invested companies in China need to keep accounts in Chinese?: Yes. All entities registered in China must maintain accounts in RMB and in accordance with Chinese Accounting Standards (CAS) or the Accounting Standards for Business Enterprises (ASBE). Financial statements must be prepared in Chinese and may optionally include an English translation. Foreign-invested enterprises that report to overseas headquarters may also maintain parallel IFRS or US GAAP books.
What are the main tax obligations for a WFOE in China?: A Wholly Foreign-Owned Enterprise (WFOE) is subject to: Value-Added Tax (VAT) on revenue from sales or services; Corporate Income Tax (CIT) at a standard rate of 25% (15% for high-tech enterprises); monthly or quarterly VAT filing; and annual CIT settlement. Additional taxes include stamp duty, urban construction tax, and local education surcharges. Monthly filings are due within 15 days following each calendar month.
When does a company need a statutory audit in China?: Every company registered in China, including WFOEs, must undergo a mandatory annual statutory audit carried out by a licensed Chinese CPA firm. The audited financial statements are required for the annual tax settlement (due May 31), annual reporting to the Administration of Market Regulation (AMR), and profit remittance abroad.
What is a Virtual CFO service in China?: A Virtual CFO (vCFO) service provides a foreign-invested business with on-demand senior financial management, including budgeting, cash flow planning, reporting to headquarters, banking relationships, and regulatory liaison, without the cost of a full-time Chief Financial Officer. It is common among SMEs, newly established WFOEs, and companies testing a market before committing to a large local team.

Client experience

What Our Clients Say

We have been working with Acadia, using the virtual CFO service for almost a year. During our time together, Jack and Lena fully dialed into our financial and business needs, spent time building trust amongst the internal finance team, streamlined our reporting SOP, and, most importantly, provided actionable analysis to assist with ongoing management strategy. Given our company size and needs, the virtual CFO service is the perfect solution. We are thrilled to work with the Acadia team and look forward to our continued partnership.

Erica Chang

Managing Director China, QA Medical

Acadia's accounting team has done an excellent job in helping us with remitting funds in and out of China. They advised us at the beginning of the transaction and represented us to communicate with local banks and authorities to ensure a smooth transaction. We take pleasure in recommending Acadia's services to companies who are looking for reliable support in China.