This service is a core module of China Compliance Risk Review™, designed to support the overall compliance infrastructure for China operations.
In China, many compliance issues do not arise from tax miscalculations — but from the fact that the company was never truly “ready” to operate.
For many foreign-invested enterprises, once the entity is set up and bank accounts are opened, operations are assumed to be ready to begin.
In practice, however, regulators, auditors, and headquarters often uncover a more fundamental issue:
The tax and finance framework was never fully operationalized.
The Tax & Finance Readiness module addresses this foundational question:
Is the company structurally ready for sustainable and explainable tax and financial compliance?
Why “Filing” Does Not Equal “Readiness”
Common early-stage risk scenarios include:
Accounting policies not aligned with tax treatment
VAT handling adjusted repeatedly in practice
CIT profit logic not yet clearly defined
Financial reports produced without clear business explanation
HQ unable to assess which figures are stable and defensible
These issues may not trigger immediate penalties, but they significantly increase risk during system reviews, audits, and due diligence.
Key Areas We Assess
1 | Alignment of Accounting Policies and Tax Treatment
Whether accounting and tax logic support each other
Whether early choices constrain future compliance
Whether explanations remain consistent over time
2 | Operational Readiness of VAT Handling
Whether VAT rates align with business substance
Whether invoice, business, and cash flows form a closed loop
Whether systemic risk triggers exist
3 | Explainability of CIT Profit Logic
Whether cost structures reflect business reality
Whether profit levels are fundamentally reasonable
Whether a stable basis exists for future CIT reviews
4 | HQ-Readable Financial Output
Whether financial reporting supports HQ understanding
Whether key metrics are explainable to management
Whether reporting avoids purely local interpretations
Common “Not Ready” Scenarios
Tax positions tested on the fly during operations
Finance teams executing without explaining logic
HQ receiving reports without risk context
Early data later becoming the focus of regulatory review
These are not violations — they are structural readiness gaps.
What This Module Is Not
This module does not include:
Routine bookkeeping or tax filing
Tax planning or optimization
Audit or inspection defense
Outcome guarantees
It is a readiness assessment and design module, not an execution service.
What You Will Receive
Assessment of tax and finance readiness level
Identification of key readiness gaps
Explainability analysis of accounting and tax logic
A stable foundation for China Compliance Risk Review™
Position Within China Entry + Governance Package
This module:
Serves as the final gate of the Entry phase
Bridges setup, governance, and ongoing compliance
Prepares the company for sustainable operations and risk review
In China, compliance does not begin with the first filing — it begins with true readiness.
We do not make decisions for you; we only help you clarify facts and risks.
Phone : 400 800 7472
Email : info@rtfcpa.com
感谢你的阅读，本文出自 RTF，转载时请注明出处，谢谢合作。
