Filing duties start with the business license; file on schedule even when the return is all zeros

Free to file through China's electronic tax office monthly or quarterly; each return takes minutes. An accountant is a separate commercial expense. Employers must also register for social insurance within 30 days of establishment. Remembering to file during inactive months is the challenge.

Chinese tax rules require returns even when no tax is payable in the period. Late filing brings a correction deadline and an optional fine up to RMB 2,000, or RMB 2,000–10,000 for serious cases. Where nonfiling also causes underpayment, authorities recover tax, charge daily late-payment additions of 0.05%, and fine 50%–500% of the underpaid tax. Three consecutive months with no returns for any tax type automatically trigger abnormal-taxpayer status and suspension of invoice collection books and invoices. Filing the missing returns and accepting penalties automatically removes the status. Employing entities must apply for social-insurance registration locally within 30 days of establishment. Nationwide Chinese rules apply.

Integrated registration removes the separate tax-registration step. Sign in using the unified social credit code on the license, confirm registration information and identify applicable taxes. Individually owned businesses and sole proprietorships pay individual income tax on business income: advance payments within 15 days after month- or quarter-end, and annual reconciliation by March 31 of the following year. File even before opening; a zero return remains a return. Three months' neglect can suspend invoicing and prevent simplified deregistration; see entry 23.

State Council of China (2002). Implementing Rules of the Tax Collection and Administration Law, Order No. 362, Articles 32 and 75. https://fgk.chinatax.gov.cn/zcfgk/c100010/c5195082/content.html; NPC Standing Committee (2015). Tax Collection and Administration Law, 2015 amendment, Articles 25, 32, 62 and 64. https://fgk.chinatax.gov.cn/zcfgk/c100009/c5195081/content.html; State Taxation Administration (2019). Announcement on Tax Collection Matters, No. 48 of 2019, Article 3. https://fgk.chinatax.gov.cn/zcfgk/c100012/c5195194/content.html; NPC Standing Committee (2018). Individual Income Tax Law, 2018 amendment, Article 12. https://fgk.chinatax.gov.cn/zcfgk/c100009/c5193028/content.html; NPC Standing Committee (2018). Social Insurance Law, 2018 amendment, Article 57. http://www.npc.gov.cn/zgrdw/npc/xinwen/2019-01/07/content_2070267.htm