Monthly bookkeeping is the foundation of all accounting compliance. Under China’s Accounting Law and the CAS, all companies must maintain complete and accurate accounting records that reflect their financial position and business activities. For a typical foreign-invested enterprise (WFOE) in Anhui, monthly bookkeeping requires the following activities:

Monthly Tasks and Time Estimates

For a small WFOE (5–20 employees): Expect 2–3 working days per month for bookkeeping. This can be managed by a part-time internal bookkeeper or outsourced to a professional accounting firm.

For a medium-sized FIE (20–100 employees): Expect 3–5 working days per month. A dedicated internal accountant is typically required, supported by an external CPA firm for compliance oversight.

For large or complex operations: Companies with multiple subsidiaries, significant inter-company transactions, or complex supply chains may require 5–10 working days per month, supported by a full finance team.

Tax filing is the most time-sensitive compliance activity, with strict deadlines that cannot be extended without applying for formal extensions:

Monthly Tax Filings

Deadline: By the 15th of each month (for the previous month’s tax obligations).

Time required: 0.5–1 working day per month.

Monthly filings include:

• VAT filing (增值税申报): Calculate output VAT on sales, input VAT on purchases, and submit the VAT return through the electronic tax filing system. For general taxpayer status (most FIEs), this includes checking the VAT invoice verification system and reconciling VAT invoices.
• City maintenance and construction tax: Calculated as 7% of VAT payable (in urban areas of Anhui).
• Education surcharge: 3% of VAT payable.
• Local education surcharge: 2% of VAT payable (Anhui-specific rate).
• Stamp duty: On specific types of contracts and documents.
• Individual income tax (IIT) filing: For all employees, submitted by the 15th of each month.

Quarterly Filings

Deadline: By the 15th of the month following each quarter.

Time required: 1–2 working days per quarter.

Quarterly filings include:

• Corporate income tax (CIT) provisional filing: Companies prepay CIT quarterly based on actual profits (or a deemed rate). The quarterly CIT return reconciles actual revenue and expenses for the quarter against the annual forecast.
• Property tax filing: If the company owns real estate in Anhui.
• Land use tax filing: If the company occupies land.

The annual statutory audit is the most significant accounting compliance activity of the year. All foreign-invested enterprises in China must engage a qualified CPA firm to audit their annual financial statements. The audit process typically takes place between January and April each year (for the previous calendar year).

Audit Timeline Breakdown

Total audit completion time: Typically 15–35 working days from the start of internal preparation to report issuance. Most companies begin audit preparation in January, with the audit completed by March or early April.

Cost of audit: For a small WFOE in Anhui, the audit fee typically ranges from RMB 15,000 to RMB 40,000. For medium-sized companies, RMB 40,000–100,000. Fees depend on company complexity, transaction volume, and the reputation of the CPA firm.

The annual corporate income tax (CIT) settlement (企业所得税汇算清缴) is a separate but related process from the statutory audit. It involves reconciling the accounting profit (per audited financial statements) with the taxable profit (per tax law) and filing the annual CIT return.

Deadline: By May 31 each year (for the previous calendar year).

Time required: 5–10 working days, typically running in parallel with the audit.

The CIT settlement process includes:

• Tax reconciliation (纳税调整): Identifying and documenting all differences between accounting profit and taxable profit. Common adjustments include: non-deductible expenses (entertainment fees exceeding limits, donations, penalties), tax-preferred income (technology-related deductions), timing differences (depreciation methods, revenue recognition), and transfer pricing adjustments.
• Preparation of CIT return forms: Completing the main return form and 10+ supplementary schedules covering specific items (e.g., Schedule A105000 for tax adjustments, Schedule A107010 for tax incentives).
• Transfer pricing documentation review: If the company has related-party transactions exceeding RMB 40 million annually, a transfer pricing contemporaneous documentation file must be prepared.
• Submission and payment: Electronic submission through the tax bureau’s online system, followed by payment of any additional tax due (or filing for refund of overpaid tax).

Most companies complete the CIT settlement within 1–2 weeks after receiving the audited financial statements. The process can be accelerated by starting the tax reconciliation work in parallel with the audit, rather than waiting for the audit to be completed first.

Beyond tax and audit, foreign companies in Anhui must complete several other regulatory filings throughout the year:

Quarterly SAFE Forex Declaration

Time required: 0.5–1 working day per quarter.

This involves compiling forex receipt and payment data for the quarter, reconciling with bank records, and submitting through the SAFE online system. Most companies combine this with their quarterly bookkeeping cycle.

Annual AMR Report (年报)

Time required: 0.5–1 working day.

Filing period: January 1 – June 30 each year. The AMR annual report is submitted online through the National Enterprise Credit Information Publicity System. It includes basic company information, shareholder details, financial data, and employee information.

Annual SAFE Inspection (外汇年检)

Time required: 0.5–1 working day.

Filing period: January 1 – June 30 each year. The SAFE annual inspection confirms all cross-border transactions for the prior year. Companies must submit forex transaction data, audit confirmation, and compliance declarations. Failure to complete the inspection on time can result in restrictions on forex account operations.

Annual Transfer Pricing Documentation

Time required: 3–10 working days (if required).

Companies with related-party transactions exceeding the threshold must prepare a transfer pricing contemporaneous documentation file. This is typically prepared by the CPA firm in conjunction with the annual audit.

Yes. While most accounting compliance requirements are set at the national level, Anhui has several province-specific considerations that can affect compliance timelines:

Anhui tax bureau digital initiatives: The Anhui Tax Bureau has been an early adopter of digital tax administration tools. The province’s electronic tax filing system (安徽省电子税务局) offers streamlined workflows and automated data reconciliation, which can reduce tax filing time by approximately 0.5 working days per month compared to less digitally advanced provinces.

Free trade zone simplified reporting: Companies registered in Anhui’s Pilot Free Trade Zone benefit from simplified quarterly reporting requirements. Rather than submitting the full set of supplementary schedules for quarterly CIT filings, FTZ companies can submit abbreviated returns, reducing quarterly filing time by approximately 1 working day.

Technology hub incentives: Anhui has designated Hefei, Wuhu, and several other cities as technology innovation hubs. Companies engaged in R&D activities benefit from accelerated R&D expense super-deduction filings, which the Anhui tax bureau processes through a fast-track review channel. However, the documentation required to claim the super-deduction is more detailed and may add 3–5 days of preparation time annually.

Manufacturing compliance: Anhui has a significant manufacturing base, and the provincial tax bureau has specific guidance for manufacturing cost accounting that differs slightly from the standard CAS. Manufacturing companies should budget an additional 2–3 days for the initial compliance setup and training.

The consequences of missed deadlines vary by the type and duration of the delay:

Beyond direct penalties, missed compliance deadlines trigger increased regulatory scrutiny, which can result in longer processing times for all future applications and approvals. Companies with a history of late filings are more likely to be selected for tax audits and compliance inspections.