CIETAC | Arbitrator labor service invoicing for individuals, single case 7 days → 3 minutes

Enterprise overview

The China International Economic and Trade Arbitration Commission was established in 1956 and is a leading global international commercial arbitration institution. It accepts more than 3,000 cross-border dispute cases annually, involving 120+ countries and regions. In 2023, the amount in dispute exceeded RMB 120 billion, accounting for more than 60% of China's international arbitration market share.

Business pain points

• Arbitrators are mostly individual freelancers, and labor fees generally cannot provide formal input VAT invoices, so they cannot be listed as pre-tax costs (annual average proportion exceeds 60%), and taxable income is inflated.
• More than 30 million yuan in corporate income tax supplementary payments triggered each year due to missing pre-tax items
• Under China Golden Tax Phase IV, tax dispute cases account for 15%, with cumulative penalty risk exceeding 8 million yuan per year

Solutions

• The system automatically blocks bookkeeping with informal receipts and matches China Golden Tax Phase IV penetrating regulatory rules
• Overcame policy differences across 13 provinces to achieve cross-province invoice issuance for individuals with automatic tax payment and invoicing after a single face scan

Results achieved

• Compliant invoice coverage jumped from 5% to 78%, avoiding over RMB 30 million in tax penalties per year
• Time per customer invoicing shortened from 7 days to 3 minutes, labor costs reduced by 65%
• During the pilot period in 3 provinces, saved more than 12 million yuan in invoice issuance for individuals operating costs