China Practice
China Practice
INP Group is one of Australia and New Zealand’s leading Chinese-background chartered accounting firms, specialising in providing end-to-end, one-stop professional financial and tax solutions for Chinese enterprises investing and operating in Australia. Our clients include Australian subsidiaries of Chinese-listed companies, central and local state-owned enterprises (SOEs), large private enterprise groups, private equity funds, and high-net-worth family offices.
Our China Practice team is fully bilingual in English and Chinese, with a deep understanding of Chinese enterprises’ management structures, decision-making processes, headquarters reporting requirements, and SASAC compliance frameworks. At the same time, we have thorough expertise in the Australian Corporations Act 2001, the tax legislation framework (ITAA 1936/1997), ASIC regulatory requirements, and the ATO compliance framework — this dual capability makes us the ideal partner for Chinese enterprises investing in Australia.
Core Challenges Facing Chinese Enterprises Investing in Australia
When entering the Australian market, Chinese enterprises must navigate a legal, tax, and regulatory environment that differs significantly from China. Common core challenges include:
- Corporate Governance and Compliance Differences: The Australian Corporations Act requires locally registered companies to have at least one Resident Director based in Australia and must appoint a Company Secretary responsible for ASIC compliance filings. Many Chinese enterprises are unfamiliar with these requirements.
- Dual Financial Reporting Frameworks: Australian subsidiaries must prepare local statutory financial statements under Australian Accounting Standards (AASB/IFRS), while simultaneously preparing reporting packages under Chinese Accounting Standards (CAS) for the Chinese parent company’s consolidated financial statements. The two frameworks have significant differences in areas such as revenue recognition, lease accounting, and financial instrument classification.
- Cross-Border Tax Complexity: This involves complex issues including withholding tax optimisation under the Australia–China Double Tax Agreement (DTA), transfer pricing compliance (ITAA 1997 Subdivision 815 and PCG 2017/2), Controlled Foreign Company (CFC) rules (ITAA 1936 Part X), FIRB tax implications, and the Global Minimum Tax (Pillar Two, Division 832).
- FIRB Approval Requirements: Under the Foreign Acquisitions and Takeovers Act 2015, all investments by Chinese SOEs and sovereign funds in Australia require FIRB approval regardless of the investment amount. Private enterprises are also required to apply when their investments exceed specified monetary thresholds.
- SASAC Compliance and Jiuqi Reporting: Central enterprises and local SOEs are required by SASAC to regularly submit financial reports, budget execution reports, and other compliance information through the Jiuqi system (the SASAC regulatory information system). This requires that financial data in Australia can be accurately and promptly converted into the format required by SASAC.
- Language and Cultural Barriers: Australian legal documents, ATO correspondence, and ASIC filings are all in English. Many Chinese enterprise management teams face challenges in communication efficiency and comprehension accuracy.
Our China Practice Services
Australian Company Establishment and Corporate Governance
We provide Chinese enterprises with end-to-end Australian company establishment services, ensuring the corporate structure complies with Australian legal requirements while meeting the management needs of the Chinese headquarters:
- Australian company registration (under Corporations Act 2001 Part 2A), including ABN, TFN, GST and all other tax registrations
- Provision of local Resident Director and registered Company Secretary services
- Registered Office Address services
- ASIC annual compliance filings and corporate maintenance (Annual Reviews, change notifications, etc.)
- Assistance with drafting and customising the company Constitution
- Assistance with drafting shareholder agreements and board resolutions
- Designing the optimal Australian holding structure based on the Chinese parent company’s management requirements (direct holding, holding company, trust, etc.)
Statutory Audit and Assurance Services
Our audit team holds ASIC Registered Company Auditor status, providing comprehensive audit and assurance services for the Australian subsidiaries of Chinese enterprises:
- Conducting annual statutory audits in accordance with Australian Auditing Standards (ASAs), issuing audit reports compliant with Corporations Act 2001 Section 307
- Conducting group audits under ASA 600 (Special Considerations — Audits of Group Financial Statements) — INP acts as the Australian component auditor, coordinating with the group auditor appointed by the Chinese parent company
- Dual-framework financial reporting: preparing financial statements and audit reports simultaneously under both AASB/IFRS and Chinese Accounting Standards (CAS)
- AFSL compliance audits (under ASIC Regulatory Guide 162)
- Special purpose audits and agreed-upon procedures engagements (ASRS 4400)
Tax Compliance and Cross-Border Tax Planning
We are a Registered Tax Agent with the Tax Practitioners Board (TPB), providing a full suite of Australian tax services for Chinese enterprises:
- Company income tax lodgement (company tax rate 30% or 25% for small base rate entities), BAS/IAS preparation and lodgement, FBT returns
- Practical application of the Australia–China Double Tax Agreement (DTA) — optimising withholding tax rates on dividends (Article 10), interest (Article 11), and royalties (Article 12)
- Transfer pricing compliance and documentation — preparing transfer pricing documentation in accordance with ITAA 1997 Subdivision 815 and ATO Practical Compliance Guideline PCG 2017/2, ensuring related-party transactions comply with the arm’s length principle
- Controlled Foreign Company (CFC) rules analysis (ITAA 1936 Part X) — assessing the CFC reporting obligations of Australian subsidiaries
- Global Minimum Tax / Pillar Two compliance (ITAA 1997 Division 832) — assisting Chinese multinational groups in evaluating the impact of Australia’s Global Minimum Tax (GloBE rules)
- Tax impact analysis for FIRB applications
- Tax treatment of Australian permanent establishments (PE) — applicable where Chinese enterprises establish branch offices or project offices in Australia
- Annual tax planning and structure optimisation advice
Mergers & Acquisitions and Transaction Services
Chinese enterprises investing and acquiring in Australia require specialist financial and tax due diligence support:
- Buy-side and sell-side Financial Due Diligence
- Tax due diligence — identifying the target company’s historical tax risks, contingent tax liabilities, and tax optimisation opportunities
- Transaction structure design — optimising the acquisition structure from both tax and legal perspectives (asset acquisition vs share acquisition, holding company establishment, etc.)
- FIRB application assistance — particularly for applications involving SOEs, agricultural land, mineral rights, and critical infrastructure
- Valuation support — providing independent valuation opinions for transactions
- Post-completion integration support — including accounting system integration, tax registration changes, and compliance transition
SASAC Compliance and Jiuqi Reporting
For central enterprises and local SOEs, we provide specialist SASAC compliance services:
- Assisting with the preparation of periodic financial reports and budget execution reports for the Jiuqi system (SASAC regulatory information system)
- Accurately converting financial data prepared under the Australian AASB/IFRS framework into Chinese Accounting Standards (CAS) format
- Preparing consolidated reporting packages that comply with SASAC requirements
- Assisting with special-purpose audits and assessments required by SASAC
- Regular liaison with the Chinese headquarters finance team to ensure timeliness and accuracy of reporting
Dual-Framework Financial Reporting and Accounting Standards Conversion
Australian subsidiaries of Chinese enterprises commonly face the need for dual-framework reporting. We provide a complete solution:
- Preparing general purpose or special purpose financial statements in compliance with Australian Accounting Standards (AASB/IFRS) — for local statutory lodgement and ASIC compliance
- Simultaneously preparing reporting packages in compliance with Chinese Accounting Standards (CAS) — for the Chinese parent company’s consolidated financial statements
- Processing the differences between the two frameworks, including: revenue recognition (AASB 15 vs CAS 14), leases (AASB 16 vs CAS 21), financial instruments (AASB 9 vs CAS 22/23/24/37), income tax (AASB 112 vs CAS 18), and others
- Preparing consolidation elimination entries and intercompany transaction reconciliations
- Coordinating with the Chinese parent company’s consolidation timetable to ensure timely delivery
Family Office and High-Net-Worth Client Services
For high-net-worth Chinese families migrating to or investing in Australia, we provide one-stop family office services:
- Family trust structure establishment and tax optimisation (including discretionary trusts, fixed trusts, and hybrid trusts)
- Tax planning for investment property portfolios — negative gearing, depreciation deductions, and CGT planning
- Tax planning for global assets — overseas income reporting and Foreign Income Tax Offsets
- Tax residency assessment and the application of the Australia–China DTA tie-breaker rules
- Estate planning and intergenerational wealth transfer
- SMSF (Self-Managed Super Fund) establishment and management
Client Types We Serve
| Client Type | Typical Services |
|---|---|
|
Listed Company Australian Subsidiaries |
Statutory audit, dual-framework financial reporting (AASB+CAS), transfer pricing documentation, ESG compliance, group audit coordination, annual tax compliance |
|
Central / Local SOEs |
Jiuqi reporting, FIRB applications, SASAC special-purpose audits, budget execution reporting, ESG compliance, compliance structure design |
|
Large Private Enterprise Groups |
Company establishment, M&A due diligence, tax structure optimisation, Australian IPO support |
|
Private Equity / Venture Capital Funds |
Fund structure design, AFSL compliance audit, investment project due diligence, tax planning |
|
High-Net-Worth Family Offices |
Family trust establishment, investment property tax planning, SMSF management, global asset tax planning, migration tax |
China Practice Service Examples
CASE STUDY 1
A Chinese A-share listed energy group acquired mineral rights in Western Australia and established an operating subsidiary. INP Group provided end-to-end services: assisting with the FIRB application, designing a tax-efficient holding structure, preparing transfer pricing documentation (compliant with PCG 2017/2), conducting the annual statutory audit, and preparing consolidated reporting packages under Chinese Accounting Standards for the parent company’s group audit. By utilising the preferential rate under Article 10 of the Australia–China DTA, the withholding tax on dividend remittances was reduced from 30% to 15%.
CASE STUDY 2
A central SOE established an Australian regional headquarters in Melbourne to manage operations across Australia and New Zealand. INP Group provided local Resident Director and Company Secretary services, annual tax compliance (including company tax, GST, FBT, and payroll tax), preparation and submission of Jiuqi system reports, and AASB-to-CAS standards conversion. Our bilingual team liaised directly with the Beijing headquarters finance department to ensure reports were delivered on time in accordance with SASAC deadlines.
CASE STUDY 3
A high-net-worth Chinese family migrated to Australia with global assets including mainland Chinese property, Hong Kong-listed share investments, and local Australian businesses. INP Group assessed their tax residency status (under ITAA 1936 Section 6 and the Australia–China DTA rules), established a family discretionary trust, optimised the land tax and CGT treatment of their investment property portfolio, and implemented systematic planning for overseas income reporting and foreign income tax offsets.
Why Choose INP Group as Your Australian Partner
One of Australia’s Largest Chinese-Background Accounting Firms
Since its founding in 2015, INP Group has grown to become a leading chartered accounting firm in the Australia–Asia market, having served a large number of Chinese-listed companies, SOEs, and major private enterprises
Fully Bilingual English–Chinese Team
From partners to project teams, we provide end-to-end bilingual services, eliminating language barriers and ensuring efficient and precise communication with Chinese headquarters
ASIC Registered Company Auditor
We hold statutory audit qualifications and can issue audit reports compliant with the Corporations Act
Registered Tax Agent
Registered with the Tax Practitioners Board (TPB), authorised to represent clients in dealings with the ATO
Deep Understanding of Chinese Reporting Requirements
Familiar with Chinese Accounting Standards (CAS), the SASAC Jiuqi system, and the reporting formats and timelines required by Chinese enterprise headquarters
Five Offices with National Coverage
Melbourne, Sydney, Adelaide, Perth, and Brisbane — wherever your Australian operations are located, we can provide localised services
Award-Winning Firm
Australian Financial Review Top 5 Start-up Accounting Firm (2019), International Accounting Bulletin Rising Star Network (2018), Accountants Daily Network of the Year (2025)
Team Stability
Our China Practice core team maintains a high level of stability, ensuring clients receive long-term consistent professional service and avoiding disruption caused by frequent staff turnover
Frequently Asked Questions
The main steps include: determining the corporate structure (subsidiary or branch), applying to ASIC for company registration (under Corporations Act 2001 Part 2A), applying for an ABN and TFN, registering for GST (if applicable), appointing at least one Resident Director and a Company Secretary based in Australia, and opening a bank account.
Under the Foreign Acquisitions and Takeovers Act 2015, FIRB’s statutory review period is 30 days (extendable to a maximum of 90 days). Applications must include details of the investment proposal, corporate structure diagrams, source of funds explanations, and an analysis of the investment’s impact on Australia’s national interest. Applications by SOEs are typically subject to more rigorous scrutiny, and we recommend commencing preparation 2–3 months in advance.
If the Australian subsidiary qualifies as a large proprietary company controlled by a foreign entity (meeting at least two of the three thresholds under the Corporations Act 2001: $50 million revenue, $25 million gross assets, 100 employees), it must undergo a statutory audit. Even where the thresholds are not met, many Chinese parent companies require their Australian subsidiaries to be audited to satisfy group consolidation requirements.
The Jiuqi system is a regulatory information system established by SASAC (the State-owned Assets Supervision and Administration Commission of the State Council). Central enterprises and their overseas subsidiaries are required to regularly submit financial reports, budget execution reports, and other compliance information through this system. Our team is familiar with the format and requirements of Jiuqi reporting and can accurately convert Australian AASB/IFRS financial data into the format required by the Jiuqi system, ensuring timely submission.
Yes. This is one of our core services. We simultaneously prepare local statutory financial statements under AASB/IFRS and Chinese reporting packages under CAS, process the differences between the two frameworks (such as AASB 15 vs CAS 14 for revenue recognition, AASB 16 vs CAS 21 for leases, etc.), and prepare consolidation elimination entries for the parent company’s use.
Our fees are determined based on the scope of services, the number of entities, and the complexity of the engagement. We provide a detailed fee estimate before commencing work, with no hidden costs. For clients requiring long-term services, we offer annual fixed-fee package arrangements. Contact us for a no-obligation quote.
Services
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Key Contacts for this service
Leonard Huang
CA
Partner
Vins Wang
CA
Partner
Xuekun Li
Chartered Company Secretary
Partner / CFO