Adrian JohnsonTLDR:
- China’s Ministry of Finance is seeking feedback on draft regulations to tighten filing requirements for overseas accounting organizations without domestic offices.
- The new rules require collaboration with a Chinese partner and approval from local authorities 15 days before activities.
The Ministry of Finance in China has released draft regulations aimed at tightening filing requirements for foreign accounting organizations operating without domestic offices in the country. The draft measures, published recently, are intended to enhance the regulatory framework outlined in 2019 guidelines. These measures are part of an effort to strengthen oversight of foreign accounting organizations in China.
Under the new rules, foreign accounting bodies without local offices must have a Chinese partner to operate in the country. They are also required to obtain approval from provincial authorities 15 days before conducting any activities. Major international accounting organizations with established operations in China, such as the International Financial Reporting Standards Foundation, the Association of Chartered Certified Accountants, and CPA Australia, among others, will need to comply with these regulations.
The draft regulations also stipulate that all foreign accounting organizations, including established international bodies, must adhere to China’s unified accounting system and use domestic auditors for financial reports. This move is aimed at bringing more control and oversight to the activities of foreign accounting organizations operating in China.
Public comments on the draft measures are open until September 30, allowing stakeholders to provide feedback and suggestions on the proposed regulations. The Ministry of Finance’s initiative is part of ongoing efforts to strengthen regulatory oversight and ensure compliance in the accounting sector in China.
Overall, these draft regulations represent a significant step towards tightening the rules for foreign accounting bodies operating in China and bringing them in line with domestic regulatory requirements. It is expected that these measures will help enhance transparency, accountability, and regulatory oversight in the accounting sector in the country.
