After many Guangzhou entrepreneurs get the business license, the first problem they face is: how exactly should the company file tax returns? What is the difference between small-scale and general taxpayer? What is the difference between small scale and general taxpayer, which one should I choose, and what is the change of tax rate in 2026?

Bookkeeping and tax filing is a "mandatory course" after the establishment of a company, which must be completed on time regardless of whether there is business or not, and whether it is profitable or not. If you are late or make a mistake in filing, you will be fined, and if you are serious, it will affect the creditworthiness of the legal person and the normal operation of the company.

Today, we will start from the local practice in Guangzhou, for you to systematically sort out the core points of bookkeeping and tax reporting.

I. Core differences between small-scale taxpayers and general taxpayers

Under China's current value-added tax (VAT) system, enterprises are mainly categorized into two types: small-scale taxpayers and general taxpayers. The core differences between the two are as follows:

1. Different criteria for identification

• small scale taxpayer: Annual assessable VAT sales of less than 5 million yuan. If the sales are more than 5 million yuan, the registration of general taxpayers shall be applied for, except for special provisions.
• general taxpayer: Annual sales exceeding 5 million yuan, or not exceeding but with sound accounting and the ability to provide accurate tax information, may take the initiative to apply to become a general taxpayer.

2. Different tax/levy rates

• small scale taxpayer: The simplified tax method applies, and the levy rate is usually 31 TP3T. 2026, those who qualify can enjoy a reduced levy of 11 TP3T.
• general taxpayer: The general tax method is applied and the tax rates are classified according to the industries: Sales of Goods 13%, Transportation/Construction 9%, Modern Services/Financial Services 6%, Exports 0%, and so on.

3. Different taxing methods

• small scale taxpayer: Taxable amount = Sales × Collection rate. Input tax cannot be deducted.
• general taxpayer: Taxable amount = Sales tax - Input tax. Input tax on VAT invoices can be deducted.

4. Differences in the use of invoices

• small scale taxpayer: Ordinary invoices are usually issued, and some industries may apply for special invoices to be issued on their behalf or on their own behalf, subject to VAT at the levy rate.
• general taxpayer: It can issue its own VAT special invoice and ordinary invoice, and the purchaser can deduct input tax after obtaining the special invoice.

5. Different filing cycles

• small scale taxpayer: VAT returns are usually filed on a quarterly basis.
• general taxpayer: VAT must be declared on a monthly basis.

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II. Updated tax rates and incentives for 2026

1. Preferential policies for small-scale taxpayers

In 2026, small taxpayers continue to receive the following benefits:

• value-added tax (VAT): Monthly sales of up to 100,000 yuan (quarterly sales of up to 300,000 yuan) are exempt from VAT. The excess is levied at 1% (original rate 3%).
• "Six taxes and two fees" reduced by half: Includes resource tax, property tax, urban land use tax, stamp duty, urban construction tax, education surcharge, and local education surcharge, which are levied at a 50% reduction.

2. Enterprise income tax concessions for small and microenterprises

Enterprises that meet the following three conditions at the same time are eligible for small and microenterprise tax incentives: the number of employees does not exceed 300, total assets do not exceed 50 million yuan, and annual taxable income does not exceed 3 million yuan.

• corporate income tax: Effective tax liability for the portion of annual taxable income not exceeding $3 millionAs low as 5%(Standard rate is 25%).

3. No general tax exemption for general taxpayers, but input credits available

General taxpayers do not have the policy of "tax exemption for monthly income of 100,000", but they can offset input tax by obtaining VAT special invoices to optimize the tax burden of the chain. For enterprises with a large proportion of procurement costs, general taxpayers may have a lower tax burden.

If you need professional Guangzhou company bookkeeping and tax services, including small-scale/general taxpayer agency bookkeeping, tax planning, fiscal compliance medical examination, etc., welcome to add customer service WeChat: qcygscszk, or call the cell phone: 18676749275. our fiscal and tax experts will be your one-on-one answer to help you to comply with the business, and the development of peace of mind.

Third, Guangzhou company bookkeeping tax practice guide

1. Tax registration (required for new enterprises)

Within 30 days after receiving a business license, you must log in to the Guangdong Electronic Taxation Bureau to complete your tax registration and approve your taxes. Guangzhou has already realized the "Starting a business through one network", and the tax registration will usually be completed at the same time when registering, but it is necessary to pay attention to the log-in password text message sent by the tax bureau, and log in in time to confirm.

2. Invoicing

After completing tax registration, you can apply for invoices in the e-Tax Bureau. Small taxpayers can apply for ordinary VAT invoices; general taxpayers can apply for special VAT invoices and ordinary invoices. Guangzhou has fully promoted digital electronic invoices, which are issued directly on the platform without the need to obtain tax-control equipment.

3. Tax filing cycle

• value-added tax (VAT):: Small taxpayers file quarterly returns (January, April, July and October for the previous quarter); general taxpayers file monthly returns (by the 15th of each month for the previous month).
• corporate income tax: Quarterly prepayment (at the same time as the VAT return) and annual remittance (by May 31 of the following year).
• personal income tax: Monthly filing (by the 15th of each month), including wages and salaries, remuneration for labor, etc.

4. How does zero filing work?

If the company has no business and no income, it is also necessary to make a "zero declaration". That is to say, during the filing period, fill in all data as zero in the e-Tax Bureau and then submit them. Note: Long-term zero declaration (more than 6 months) may be subject to key monitoring by the tax bureau, or even be recognized as a "non-normal household".

5. How are the financial statements done?

Companies are required to prepare financial statements on a monthly or quarterly basis, including balance sheets, income statements, and cash flow statements. This is the basis for calculating the enterprise income tax and the source of data for the annual business report. It is recommended to appoint a professional accountant or agent bookkeeping organization to handle the process.

Fourth, small-scale taxpayers and general taxpayers, how to choose?

Many startups are torn between the two, so here's some advice to consider:

It is recommended to choose the case of small taxpayers:

• Customers are mainly individuals or small companies that do not need special invoices
• Upstream suppliers are mostly small or self-employed, making it difficult to obtain special invoices.
• Annual sales are expected to be less than $5 million with fewer entries
• Being in the early stages of business and wanting to simplify tax treatment

It is recommended to choose the case of general taxpayers:

• Customers are mainly large enterprises, state-owned enterprises, government units, requiring the issuance of special invoices
• Upstream suppliers can provide a large number of special invoices, which can be used to offset inputs
• Annual sales are expected to exceed 5 million dollars soon
• Engaged in import and export business and need to apply for export tax refund

If you need professional Guangzhou company bookkeeping and tax services, including small-scale/general taxpayer agency bookkeeping, tax planning, fiscal compliance medical examination, etc., welcome to add customer service WeChat: qcygscszk, or call the cell phone: 18676749275. our fiscal and tax experts will be your one-on-one answer to help you to comply with the business, and the development of peace of mind.

V. Guangzhou company bookkeeping and tax reporting common problems

1. Do I have to file a tax return even if I have no business?

Yes. Regardless of whether you have a business or income, you must file on time. A "zero return" can be made if there is no income, but not if there is no return.

2. What are the consequences of late filing?

First time overdue: ordered to make corrections within a certain period of time, and may be fined less than 2,000 yuan; repeatedly overdue: fined 2,000-10,000 yuan, and included in the tax blacklist; not declared for three consecutive months: the tax authorities may be mandatorily recognized as a "non-normal household", with invoices stopped and accounts restricted.

3. How much does a bookkeeper usually cost?

In Guangzhou, the cost of agency bookkeeping depends on the type of company and the volume of business:

• Small taxpayers: $1800-2400 per year
• General taxpayers: $4,000-6,000 per year
• Foreign-owned enterprises: higher costs, depending on complexity

4. Self-accounting or agency?

If the company's business is simple, the monthly ticket volume is small, and there are professional accountants, you can keep the books by yourself. However, for most start-ups, it is more cost-effective to appoint a professional agency bookkeeping organization, which saves effort and avoids risks.

Bookkeeping and tax filing is the foundation of company's compliant operation and the prerequisite for enjoying the policy dividends. Whether you are a small-scale or general taxpayer, the core is "true declaration and timely payment".

With our experienced team of accountants, we can provide one-stop service from tax registration, invoice application, bookkeeping and tax filing to annual remittance. If you have any questions about bookkeeping and tax filing, or want to get the exclusive tax program, please feel free to contact us.

If you need professional Guangzhou company bookkeeping and tax services, including small-scale/general taxpayer agency bookkeeping, tax planning, fiscal compliance medical examination, etc., welcome to add customer service WeChat: qcygscszk, or call the cell phone: 18676749275. our fiscal and tax experts will be your one-on-one answer to help you to comply with the business, and the development of peace of mind.