DEPLOYING NETSUITE IN CHINA PART 2- COMPLYING WITH CHINA GAAP REGULATIONS

2021-04-20

If you are using NetSuite to manage finances for a subsidiary in China, you will require a solution to adapt your Chart of Accounts, report language and report templates and formatting to comply with China GAAP requirements. China’s Ministry of Finance requires all business entities in China to provide financial reports according to a specific template, including a stipulation that all accounting vouchers should contain a P.R.C. GL account number and its Chinese description.

The following localized reports must be provided to the tax authorities to comply with China tax law and financial audit requirements:

• Balance Sheets
• Profit/Loss
• Voucher
• Ledger, (General Ledger, Sub Ledger, Diary Ledger)

NetSuite does not offer China GAAP compliant tax report generation as a standard function, but localized versions of each of these reports can be generated from within NetSuite using Trigger Networks’ China GAAP SuiteApp. 

Obtaining a CERTIFICATE OF COMPLIANCE (备案）from local tax authorities

To ensure full compliance of your NetSuite system with all relevant China tax regulations, a certificate of compliance, referred to in Chinese as “Bei An 备案” is required for all entities paying tax in China. In addition to our China GAAP SuiteApp, Trigger Networks’ finance localization services include the option to assist companies with the application of China’s tax compliance certificate.

For more information about making NetSuite compliant with China GAAP, please download our separate FAQ on China GAAP for NetSuite from or request this document from a Trigger Networks representative.