What is the process of the annual audit work for Joint Ventures (JV), Wholly Foreign Owned Enterprises (WFOE) and Foreign Invested Commercial Companies (FICE) in China?

First of all, enterprises need to prepare a statutory annual audit report, which includes a balance sheet, an income statement and a cash flow statement. As a next step, enterprises need to prepare a corporate income tax (CIT) reconciliation report. Corporate income tax reconciliation reports can varydepending on the city, so it is important to check the requirements. According to the ‘Interim Regulations for the Publicity of Corporate Information’, each year from January 1^st to June 30^th, all foreign invested enterprises must submit an annual report for the previous fiscal year to the relevant AIC. Also, from 2014, the annual combinative inspection has been replaced by an annual combinative reporting system. Therefore, government bureaus take on the role of supervisors rather than judges.