Compliance
Tax
Tax outcomes follow the way the business contracts, invoices, pays, employs people, holds assets and moves goods or services. Management should map these activities before launch, document material positions and make sure accounting, treasury, commercial and tax teams work from the same transaction facts.
Designing Tax Around the Operating Model
01
Map the transaction flows
Record the parties, contracts, deliverables, invoices, payments, locations and supporting evidence for each material flow. Labels used by the business should not replace analysis of what actually occurs.
Transaction record: Parties / Contract / Delivery / Invoice / Payment
02
Assign ownership of tax decisions
Separate preparation, technical review, business approval and payment authority. External advisers should receive complete facts and return conclusions that management can record and operate.
Decision map: Business owner / Finance / Adviser / Approver / Evidence
From Transaction Flows to Filing Control
03
Connect positions to accounting data
Material tax treatments should be traceable to ledger accounts, invoices, contracts and reconciliations. Differences between commercial records and filing data require an accountable resolution process.
Data chain: Contract / Invoice / Ledger / Filing / Reconciliation
04
Review changes before implementation
New products, locations, staff, intercompany charges and contract terms can alter earlier assumptions. Tax review should be part of the commercial change process rather than a year-end correction.
Change trigger: Product / Entity / People / Pricing / Cross-border flow
Tax Decisions Before Commercial Activity
Guide
Guidance on transaction mapping, tax ownership, filing controls, invoicing, evidence, accounting alignment and change management.
Comparison
Comparisons of transaction and operating scenarios across tax exposure, documentation, cash flow, administration and commercial feasibility.
Review
Reviews of material positions, transaction facts, intercompany activity, filing data, payment controls, reconciliations and unresolved exposure.
FAQ
Answers to management questions on contracts, invoicing, cross-border flows, intercompany charges, employees, filings, payments and records.
Resources
Transaction maps, position papers, filing calendars, responsibility matrices, reconciliations and adviser handover materials.
Tool
Tools for scenario analysis, transaction mapping, evidence checks, filing control and review of business changes.
Case
Examples of how foreign companies aligned tax work with contracts, accounting, treasury and operating decisions in China.
News
Developments affecting tax policy, filing administration, transaction treatment and the assumptions used in business planning.
How to Use the China Tax Hub
Use Guide to frame the work, Comparison and Review to test alternatives and risk, and FAQ and Resources to prepare the working file. Tool and Case support the management recommendation; News confirms whether the underlying assumptions remain current.
Before commercial activity begins, management should approve the material transaction flows, tax owners, adviser scope and filing controls. Positions should be documented against current facts and reviewed whenever the business changes, with specialist confirmation for significant or uncertain matters.