- Country Information
- China
How are expenses managed in China?
Horizons are handling all employee's expense with the established procedures which is designed to ensure that all client EE are promptly reimbursed for all compliant business expenses authorised in accordance with the Invoice Management Measures of the People's Republic of China 中华人民共和国发票管理办法》, and Corporate Income Tax Law《中华人民共和国企业所得税法》.
Q :What's the general process?
Answer:
- Submission: Employees submit expense claims through the Horizons platform.
- Client Review: The client representative reviews the claim to ensure it aligns with their delegation and authority matrix and is reasonable from a business perspective.
- Finance Review: Horizons Finance conducts a pre-accounting review to ensure compliance with Chinese tax and accounting regulations. This typically takes 2-5 working days.
- Payment: Claims approved by the 15th of the month are reimbursed on the next payroll date.
Important Tips for Expense Claiming and Approval
At Horizons, we are committed to enhancing your employment and payroll experience. To ensure a seamless reimbursement process, please take note of the following updates in March 2025
The expense approval deadline has been updated to the 15th of the month. However, Horizons Finance still requires sufficient time to review and process claims that have already been approved by clients. This often results in a surge in submissions around the 15th, which may cause delays. Horizons Finance will complete the pre-accounting review as quickly as possible to avoid potential delays. Your cooperation is greatly appreciated in ensuring a smooth and efficient process.
For Employees
To ensure you receive your reimbursement on the next payroll date, please:
- Submit your expense claims as early as possible.
- Ensure all supporting documents (vouchers or invoices) are compliant with the attached requirements.
For Approvers
To help employees receive their reimbursements promptly, please:
- Review and approve expense reports as soon as possible after submission.
Q: Why is a pre-accounting review necessary?
A: The review ensures that all expense claims comply with Chinese tax laws and accounting practices, preventing unnecessary tax burdens for both employees and the clients.
Q: Shall I collect the original copy of reimbursement documents to Horizons local office?
A: Yes, if there's no 电子发票（Qualified E-Invoice, not scan copy)
The Horizons initiative promotes environmentally sustainable practices and encourages employees to opt for electronic invoices instead of physical copies, which require manual record-keeping.
If there is any original copies: employee ensure that it is sent to Horizons before 15th of the following (next) month. If the original copies are missing or the invoice is not in compliance as verified. The relevant amount of income will be included in the pre-tax income of the employee in the latest tax declaration cycle, and we will withhold the corresponding individual income tax in the next month.
Please send the original fapiao to 裕通路100号宝矿商务中心3303，财务部收 021 52668232
Q: What happens if vouchers are missing or non-compliant?
A: Missing or non-compliant vouchers may result in the amount being included in the employee’s taxable income, with corresponding individual income tax withheld in the next month.
Q: How can I obtain electronic invoices for railway expenses?
A: Starting 1 November 2024, you can obtain electronic invoices via the 12306 app or website for domestic railway tickets. A new digital passenger transport electronic invoice service will be rolled out on national railways starting from November 1st. 2024 So now, after purchasing, refunding or changing your domestic railway tickets through railway 12306 (website and mobile app), you can easily obtain electronic invoices, for expense claiming. → how to obtain the E-invoice from 12306[Link]
Q. What are the responsibilities of employees and reviewers?
- Employees: Submit claims early and ensure all vouchers comply with requirements.
- Reviewers: Approve claims promptly to expedite reimbursements.
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