Expenses in China Internal

What can or cannot be expensed?

All valid business expenses, such as office equipment, can be processed tax-free with corresponding fapiaos (official invoices or receipts) to back them up. However, we are unable to reimburse any expense costing over US$500. If your supported employee has an expense greater than that amount, we can reimburse them via a gross-up bonus in payroll to cover the tax. While there is no statutory limit to the amount that can be spent, you should communicate limits for each category to your supported employee based on your internal expense policy.

You should also share clear guidance with your supported employees on what will be reimbursable and if there are any internal limits for different categories.

How are expenses reimbursed?

Expenses with proper documentation will be reimbursed to your supported employee, tax-free, during each FRP (Faster Reimbursement Process) cycle on the 5th and 20th of the month. 

Can supported employees avoid paying out of pocket and waiting for expense reimbursements? 

Unfortunately, no. We can only reimburse an expense once your supported employee submits it in our cloud-based web application and provides the supporting documentation. Velocity Global will reimburse your supported employee according to the FRP (Faster Reimbursement Process) cycles.

What are the country-specific expense regulations?

Expenses must include a fapiao (official invoice or receipt) with the company name and tax ID number.

How do expenses need to be documented in China?

A fapiao (official invoice or receipt) is required for all expenses. Hard-copy records must always be submitted.

Can Velocity Global help us provide per diems instead of expenses? Can Velocity Global provide per diems for business travel?

Per diems are not applicable in China and thus cannot be provided in lieu of expense reimbursement.