Chinese Accounting Outsourcing & Taxation Services

Best Adut & Accounting Services In China

Grasping the accounting and tax systems takes expertise, experience and will be expensive. This is where a trusted advisor, STAR Accounting, creates value for your business. We provide a comprehensive solution in accounting, taxation, cash management, company seal safekeeping and employees’ social benefit management and beyond. It is our mission to be the bridge and guardian for foreign business in their Chinese market navigation.

Our Experts
Help You Start Business In China

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Yanjun SUN

PresidentFounder of the company. Director of Expert Committee of Shanghai Association of Accounting and Bookkeeping Service.

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Huiying SHEN

Chief Account
Specialized in international trading and manufacturing start-ups

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Rita Hu

V.P. Tax advisory
Specialized in tax compliance, tax planning and dispute resolution

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Effie TANG

V.P. Company registration
Specialized in company registration and oversea business

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Xidong SHEN

C.O.O.
Specialized in audit, accounting and financial management

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Yvonne XIE

Head of Accounting Division
Specialized in accounting and finance services

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Yoyo HUANG

Manager of small and start-up enterprise accounting department
Sepcialized in accounting and tax services

OUR HAPPY CLIENTS

Frequently Asked Questions

FAQ

1.What is salary income?

Answer: Wages, salaries, bonuses, year-end salary increases, labor dividends, allowances, subsidies, and other income related to the position or employment of an individual are wages and salary income.

2.Is the income earned by an individual serving as a director and supervisor of the company classified as salary?

Answer: Individuals who serve as directors or supervisors of the company, and do not serve in the company, director fees and supervisor fees obtained from employment, belong to labor remuneration, and should be levied personal income tax according to the item of "labor remuneration"; individuals serving in the company (including affiliated companies), Those who are employed and concurrently serve as directors and supervisors belong to wages and salaries, and the directors’ fees and supervisor’s fees shall be combined with personal wages, and individual income tax shall be calculated and levied uniformly according to the item of “wages and wages”.

3.Are the subsidies and allowances given to employees by the unit in the name of meal allowances belong to wages?

Answer: The allowance for missed meals, which is not taxed as required, refers to those individuals who work in urban or suburban areas on business and cannot go to work or return to dinner and really need to eat out according to the actual number of missed meals. Miscellaneous meals received by the prescribed standards. Except for the above-mentioned circumstances, the subsidies and allowances issued by the unit to employees in the name of meal allowances belong to wages and salaries, and should be incorporated into the current month's wages and salary income for calculation of personal income tax.

4. Should the over-paid three insurances and one housing fund be incorporated into the current salary and salary to calculate and pay personal income tax?

Answer: If the unit exceeds the prescribed ratio and standard to pay for the "three insurances and one housing fund", the excess shall be incorporated into the individual's current salary and salary income, and individual income tax will be calculated.

5. Should taxpayers who need to declare and pay multiple taxes including corporate income tax (prepayment), urban land use tax, real estate tax, land value-added tax, and stamp tax at the same time, must make a comprehensive declaration?

Answer: Starting from July 1, 2020, when taxpayers need to declare and pay one or more of the corporate income tax (prepayment), urban land use tax, property tax, land value-added tax, and stamp tax, they can choose the comprehensive tax declaration. Among them, corporate income tax payers do not currently cover tax-paying companies operating across regions.

6. The individual tax paid in a certain country is higher than the calculated deduction limit, what should I do if there is no deduction?

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7. Which value-added tax invoices can be checked on the VAT invoice selection confirmation platform?

Answer: According to Article 2 of the "Announcement of the State Administration of Taxation on Expanding the Pilot Scope of Small-scale Taxpayers Issuing Special Value-Added Tax Invoices" (State Administration of Taxation Announcement No. 8 of 2019), general taxpayers obtain special value-added tax For invoices, uniform invoices for motor vehicle sales, and general electronic VAT invoices for toll road tolls, you can use the VAT invoice selection confirmation platform to query and select VAT invoice information for deduction, export tax refund, or tax refund.

8. After the VAT exemption standard is raised, how to deal with the sale of real estate by other individuals?

Answer: According to the current policy, if the taxpayer applies the simplified tax calculation method, the sales amount returned to the buyer due to the sales return shall be deducted from the current sales amount. Therefore, small-scale taxpayers with sales returns should deduct the corresponding sales returns from the actual sales in the current period to determine whether the tax exemption policy below 100,000 yuan applies.

9. Small-scale taxpayers who pay monthly taxes make a sales return in the previous month, and the actual sales this month

How do I determine whether this month’s sales can enjoy the value-added tax exemption?
Answer: According to the current policy, if the taxpayer applies the simplified tax calculation method, the sales amount returned to the buyer due to the sales return shall be deducted from the current sales amount. Therefore, small-scale taxpayers with sales returns should deduct the corresponding sales returns from the actual sales in the current period to determine whether the tax exemption policy below 100,000 yuan applies.

10.Small-scale taxpayers who report quarterly can enjoy the VAT exemption policy after excluding the sales of real estate transfers. What should be paid attention to when reporting?

Answer: According to the current policy, if a small-scale taxpayer has real estate sales in the current period, the current sales after deducting the real estate sales are used to determine whether it exceeds 100,000 yuan (300,000 yuan on a quarterly basis). In the process of declaration, taxpayers can report real estate sales according to the prompts of the declaration system, and the system will automatically prompt whether it exceeds monthly sales (quarterly sales) and fill in matters needing attention.

International Financial Reporting Standards (IFRS) is the general accounting guidelines that corporations are required to follow in western countries. As accounting practice could be highly localized, the accounting standards often differ to a certain degree among countries. Chinese Generally Accepted Accounting Principles (GAAP) applies to all business operations in PRC. Understanding the discrepancies between the Chinese GAAP and the IFRS is crucial for compliance reasons as well as tax purpose.

 

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