If you are thinking of setting up a business in China or you have already started then like the country that you come from, you need to be tax compliant as it is a legal requirement by the Chinese government. It is a legal obligation and so this is why it makes perfect sense that you want to make sure that your business is tax-compliant at all times. You cannot afford to get on the wrong side of the law when it comes to such things and it’s better to keep yourself updated because ignorance is not an excuse.
It is unreasonable to expect you to know and understand tax compliance rules in another country and so this is when you turn to international tax compliance services because these providers already know the rules and regulations that need to be followed to the letter of the law. When starting off a new business in any country, you need to be able to concentrate on increasing your customer base and increasing your profits and you can’t do either of these two things if you are stressed out about being tax compliant. The following are just some of the reasons why every business in China needs to be tax-compliant.
- It’s a legal requirement – This isn’t something that you can just ignore and there is a high possibility that you will receive penalties and be instructed to pay interest on any charges due to defaults on your part. In some cases, it can even lead to jail time and so doesn’t make any sense to miss deadlines or to not submit essential tax paperwork in full.
- It opens up the public sector – Every new business needs to take advantage of the opportunities that are put in front of it and while the private sector should offer you many of these opportunities, it would be much better if you could also turn to the public sector as well. You can’t however put forward tenders for jobs if you are not tax-compliant. If you are following the relevant tax laws and you are submitting your taxes on time then you will get a certificate of compliance that allows you to be able to get involved in taxpayer-funded projects.
- For the movement of funds – It may be the case that you want to move some of your profits back home to your country and for that to happen you’re definitely going to need some kind of tax clearance certificate. If you are not compliant with your taxes as a business then an application to send funds overseas may be delayed or even rejected outright.
Hopefully, these three reasons will encourage you to sign up for international tax-compliant services from a local provider. You want to be able to hit the ground running when it comes to your new business venture and so making sure that you are on the right side of the tax law will allow you to expand and to be profitable.