国际商务谈判 Chapter 10 International Investment Negotiations.ppt

The accounting rules enunciated in these laws require that joint ventures formulate an accounting system in accordance with Chinese regulations and the circumstances of the joint venture. Once formulated, the accounting system adopted by the joint venture must be reported, for the record, to the finance department of the joint venture′s unitin charge and the tax bureau in the locality where the joint venture is located. In general, the debit and credit method of keeping accounts must be used in a joint venture. Moreover, all of the vouchers, account books, and statements prepared by the joint venture must be in the Chinese language and must be submitted to the local tax authorities before being put into use. If the parties of the joint venture agree to use bilingual documentation, this may also be approved. Under the applicable laws, the Gregorian calendar year from 1 January to 31 December must be used as the fiscal year for all joint ventures. (2) Audit In most joint ventures, the accountant is appointed by the Chinese party and a deputy or assistant accountant is appointed by the foreign party. The accountants are responsible for preparing quarterly and annual accounting statements for distribution to the joint venture parties, the local tax office, and other authorities, including the original approvalgranting organ. Such statements must be audited by a Chinese registered accountant before they may be deemed valid. In some joint ventures, the foreign party has been given the right to conduct at its own expenses a separate audit of the joint venture′s accountants, but such audits are not binding for the purposes of Chinese laws unless they are conducted by a qualified Chinese accountant. (3) Profit distribution ?Net profit of a joint venture is distributed in line with the proportion of each partner′s registered capital after paying the venture′s income tax according to the country′s law on taxes and after deducting the reserve fund, bonuses for empl