Year-End in China: What Closes, What Is Due, the Annual Reporting Calendar
China Field Notes · by Daona · 9 min read
China's financial year is the calendar year, but its compliance year runs from December to the following summer. Close the books cleanly in December, and the audit, the tax returns and the annual report fall into place by June. Leave things open, and the Spring Festival will close them for you.
Every Chinese company uses the calendar year as its financial year — there is no March or June year-end. So the close, the audit, the corporate income tax return, the individual tax reconciliation and the annual report all share one timetable. In the middle of it, usually in late January or February, comes the longest holiday of the year.
| When | What |
|---|---|
| Nov–Dec | State Council publishes next year's holiday schedule; year-end planning |
| By 31 Dec | Fapiao, intercompany charges, inventory count, year-end bonuses |
| January | Close; December and Q4 filings; audit fieldwork |
| Late Jan–Feb | Spring Festival (2027: 6 February) |
| End April (typical) | Audit report signed by a licensed CPA firm |
| 1 Jan–30 Jun | Enterprise annual report on gsxt.gov.cn |
| 1 Mar–30 Jun | Individual income tax annual reconciliation |
| By 31 May | Corporate income tax reconciliation + related-party forms |
| By 30 Jun | Transfer pricing local file, if thresholds met |
| Jun–Jul (by city) | Social insurance contribution base adjusted |
| After audit & CIT | Profit distribution, if any |
Fapiao for this year's costs. A 2026 cost is deductible for 2026 corporate income tax only with valid evidence — usually a fapiao (发票), which should be obtained before 31 May 2027, the end of the reconciliation period. Chase suppliers in December: some close for weeks around the holiday, and auditors want documents in January. See Issue 08.
Intercompany charges. Agree, invoice and record management fees, royalties and recharges in the year they relate to. Payments abroad above US$50,000 need a tax record filing — see Issue 15.
Inventory, assets, banks. Plan the inventory count, check the asset register, and warn banks to expect audit confirmation requests.
Year-end bonuses. Common before the Spring Festival, but not required by national law unless the contract or policy says so. A resident's annual one-off bonus can be taxed separately at the rate for one-twelfth of it — an option that runs to 31 December 2027. See Issues 09 and 17.
Registered capital. Check your five-year paid-in schedule and plan next year's contributions. See Issue 13.
Spring Festival 2027 falls on Saturday, 6 February. Since 2025, the statutory holiday is four days — New Year's Eve and the first three days — out of 13 public holiday days a year. The State Council combines these with weekends and adjusted working days (调休), often into a break of around eight or nine days. The schedule is usually published in the last quarter (the 2026 one in early November 2025). We will not guess the 2027 dates.
· Government offices close for the official period; deadlines in the holiday are usually adjusted — check your local tax calendar
· Banks keep limited services; cross-border payments may be slower
· Factories and suppliers often stop longer than the official holiday
· Logistics tightens in the weeks before
· Staff travel: approvals, seals and signatures should not depend on one absent person (Issue 06)
Residence permits. If a foreign employee's residence permit (居留许可) expires in January to early March, apply early: the Exit and Entry Administration Law requires an extension application at least 30 days before expiry, and exit-entry offices close for the holiday. Check re-entry status before anyone travels home.
Statutory audit
Most foreign-invested enterprises are audited by a Chinese CPA firm each year. Audited figures support the tax return, the annual report and any dividend — banks generally want them before remitting profit (Issue 15). Many aim for a signed report by end of April.
Corporate income tax: by 31 May
The annual reconciliation (企业所得税汇算清缴) is filed and paid by 31 May, with the related-party transaction forms (关联业务往来报告表). Above the thresholds — e.g. related-party goods transactions over ¥200 million a year — a transfer pricing local file is due by 30 June.
Individual income tax: 1 March–30 June
Resident employees settle through the IIT app, the employer or a licensed agent; early March has required appointments. Remind foreign staff early — those with foreign-source income or refunds often file themselves.
Enterprise annual report: 1 January–30 June
Every company files an enterprise annual report (企业年度报告) on the National Enterprise Credit Information Publicity System (国家企业信用信息公示系统, gsxt.gov.cn). For foreign-invested enterprises it is a "many-in-one" report (多报合一), carrying the foreign investment information report and the FDI stock data used by SAFE.
An outdated deadline
SAFE's stock-of-equity registration (直接投资存量权益登记) began in 2015 with a 30 September deadline. For inbound investment, the data now goes through the annual report — so for a WFOE the date that matters is 30 June. Outbound investors still file with SAFE separately.
Corrections can be made on the system until 30 June, then through the commerce authorities. Non-filers can be put on the abnormal operations list (经营异常名录), visible to anyone who checks you (Issue 07).
Social insurance base: mid-year
Each city resets the contribution base yearly from the previous year's average wage. Many start the cycle on 1 July — Beijing's 2026 cycle began in July 2026 after a June–July declaration window. Check your city. See Issue 17.
A WFOE pays an agency ¥318,000 including 6% VAT for a December 2026 campaign. The agency only issues the special VAT fapiao in June 2027.
| By 31 May 2027 | June 2027 | |
|---|---|---|
| Amount paid | ¥318,000 | ¥318,000 |
| Cost before VAT | ¥300,000 | ¥300,000 |
| Deductible in 2026 return | ¥300,000 | At risk |
| CIT effect at 25% | ¥75,000 saved | Up to ¥75,000 paid |
| Input VAT ¥18,000 | Creditable | Creditable when received |
Illustrative. Does not refer to any real company.
The rules offer some remedies for late vouchers, but with extra procedure and uncertainty. Chasing one supplier in December is cheaper.
"We can choose a different financial year." Chinese companies use the calendar year.
"The annual report is optional for small companies." Every company files, even with no revenue.
"SAFE registration is due by 30 September." The 2015 rule. For a WFOE, it is the annual report by 30 June.
"The holiday is one week." Suppliers and factories often stop for longer.
"Year-end bonuses are mandatory." Only if the contract or policy says so — but expectations are strong.
Your checklist
☐ Chase all 2026 fapiao in December; none later than 31 May 2027
☐ Invoice and record intercompany charges for the year
☐ Schedule inventory count; warn banks about confirmations
☐ Decide bonuses and their tax treatment
☐ Book the audit for a signed report by end of April
☐ Diary: CIT 31 May; annual report 30 June; IIT 1 Mar–30 Jun; local file 30 June
☐ Residence permits expiring before mid-March: apply 30+ days ahead
☐ Share the 2027 holiday notice and adjusted working days
☐ Note your city's social insurance base month
Rules as of October 2026. This column provides general information, not legal or tax advice. Audits are performed by licensed CPA firms and tax filings by your finance team or a licensed tax firm. Government fees and licensed firms' fees are settled by the client at cost.
China Field Notes · by Daona