On 7 September, KPMG China and Inspur signed a framework agreement affirming their intention to form a strategic alliance to develop Total Tax Solutions (“TTS”), which is a tax management software solution. Both parties aim to leverage each other’s strengths in products, solutions and markets to develop a leading, comprehensive tax management software solution for domestic Chinese enterprises, with a view to meeting local market demands and promoting the use of digital, networking and intelligent technology in tax management. Xingshan Wang, Executive President of Inspur Group, and Edwin Fung, Vice Chairman of KPMG China, attended and witnessed the signing ceremony.
Pursuant to the agreement, both parties will commence strategic cooperation to integrate tax advisory, information technology products and services to develop TTS software. TTS aims to streamline business, finance and taxation, offering total tax management solutions throughout the entire life cycle of tax risk management, covering the three key stages, namely pre-filing, filing and post-filing. With an internet-based mindset and use of big data technology, TTS enables data collection, and analytics as well as monitoring of different types of taxes, within or outside of China. This can help large Chinese enterprises build an integrated, highly effective and comprehensive tax management system.
Since the full implementation of China’s VAT reforms, Chinese enterprises generally resolve the basic issues of VAT management, such as invoice issuance and regular tax filing. However, as China continues the deepening of fiscal and tax reforms, and the introduction of various self-assessment mechanisms, tax risk management has become an important factor affecting the core competitiveness of an enterprise. With limited resources, Chinese enterprises can improve compliance, tax work efficiency, and better support business by adopting a proactive approach to tax risk management.
The strategic alliance between the two leading companies in tax advisory and ERP will take cooperation to a new level. The combination of KPMG’s extensive experience in tax advisory with Inspur’s technical strength in tax information technology will help Chinese enterprises adapt to the increasingly complex environment of tax administration and set the bar for tax management in China.
Inspur is a leading vendor of cloud computing and big data solutions and the largest provider of enterprise management software in China. As a creator and a pioneer of enterprise management software, Inspur has been leading the industry to focus on high-end solutions. It initiated and launched “centralised group finance” and “sector ERP” solutions for the first time in China and has topped the market share of group management software for 13 years in a row. It has great competitive advantages in IT-based consultation, planning, software development and solutions for enterprises.
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. KPMG International’s member firms can be found in 155 countries. KPMG China has 17 offices in China, with about 10,000 professionals. At KPMG, our tax professionals are equipped with strong technical knowledge and industry specific understanding. KPMG is at the forefront of public debate on tax policy and other related matters that affect the wider community. Our experienced team of tax professionals from around the world can help advise on a wide spectrum of tax service areas across all major industries.
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KPMG China operates from 17 offices across China, with around 10,000 partners and staff. The offices include Beijing, Beijing Zhongguancun, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Xiamen, Hong Kong SAR and Macau SAR. With a single management structure across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 155 countries and regions, and have 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG China was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong office can trace its origins to 1945. This early commitment to the China market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in the Chinese member firm’s appointment by some of China’s most prestigious companies.