1.
Why are bookkeeping and tax declaration necessary for registering companies?
- 1.
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For the purpose of taxes. Accounts should be set up and statements should be provided when declaring taxes.
- 2.
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For the purpose of annual review of the license. The company must submit its annual reports (annual review of
the business license we often mentioned before) before June 30 of the following year from its establishment,
that is, its financial information.
- 3.
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For the purpose of company development. A company generally faces three choices at the end of its development:
the first is to apply for becoming a general taxpayer of value-added tax or to go public after growing, the
second is to apply for cancellation due to poor management, and the third is to transfer the company to other
shareholders. Either way, the tax bureau and the continuing operator will check the company's account books and
require normal company taxes.
2.
What bills are available for bookkeeping?
Invoices, bank receipts, pay sheets, receipt and payment receipts of cash loan, inventory tables of
merchandise inventory, etc.
3.
Can I keep accounts by myself without employing an accountant?
No. The Accounting Law stipulates that all personnel engaged in accounting work must obtain a Certificate of Accounting
Profession. Only accountants can keep accounts.
4.
What are the impacts of not declaring taxes?
Not declaring taxes within the prescribed time limit will bring about corresponding fines and late fees and lead to the
company being monitored, which will have negative effects on the company's purchase of invoices and other tax treatment,
as well as the credit of the company's legal person. If the company is not cancelled, it must keep accounts and declare
taxes, otherwise the credit of legal person and shareholders will be affected. The specific impacts are:
- 1.
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The house cannot be purchased with a bank loan.
- 2.
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The immigration cannot be handled.
- 3.
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The pension insurance cannot be received.
- 4.
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The company will be fined 2,000 to 10,000 yuan by the tax bureau every year.
- 5.
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The company's owing taxes will cause the legal person to be prohibited from leaving the country, not to purchase air tickets
and train tickets.
- 6.
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The company's not declaring taxes for a long time will be checked by the tax bureau.
- 7.
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The company's not declaring taxes for a long time will cause the invoice machine to be locked.
