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》.



Question :What's the general process?

Answer: After Employee claiming the expenses through Horizons Platform, the client rep will review in generally following Y/N criteria

  • Whether the expenses are claimed in accordance with client delegation and authorities matrix or not.
  • Whether the expense are claimed with voucher at adequate amount or not.
  • Whether the expense are claimed with adequate rationality from client business prospective


Once they are approved by client, Horizons China team will conduct pre-accounting review initial putting forward to payout process. It takes 5-10 working days in general to verify all expense and relevant vouchers online. 

  • The amount of the original voucher is consistent with or greater than the amounts claimed. 
  • Compliance degree of the voucher
  • buyer's information, such as the company's head and tax number, is correct
  • the content, price and other information is consistent with the expense description of the reimbursement form.
  • The documents of voucher are verified, legible and unaltered.
  • The nature of cost is relevant to the business activities
  • any accounted document with No. of invoice are being submitted by mistake 


Question:  Why Horizons team must do pre-accounting review before reimbursement being proceeded?

Answer:  As the expense will be taken into Horizons' accounting book in China. After client review and approved from Client’s business prospective, Horizons reviewer must check with all vouchers on the compliance level to the related law and regulation in China Taxes and Accounting practice, otherwise it will enhance the unnecessary taxes burden to not only Horizons but to client as well.  


Questions:  Shall I collect the original copy of reimbursement documents to Horizons local office?

Answer:  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.

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] 


Please send the original fapiao to 裕通路100号宝矿商务中心3303，财务部收 021 52668232





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