Hong Kong profits tax is only levied on business profits derived from Hong Kong, and limited companies are subject to a two-tier tax rate, with the first HKD 2 million taxed at 8.25%, and the excess at 16.5%. If a company incurs a loss, it must still submit the tax return on time after receiving it.

In the first year after the establishment of a Hong Kong company, it must complete account opening, set up an accounting system, submit the annual return (NAR1), declare profits tax, and renew the business registration, each with a clear statutory deadline, and penalties for missing them. Key Summary The annual return must be submitted within 42 days after the anniversary of establishment The profits tax return is usually received about 18 months after establishment and must be submitted within 1 month of receipt The business registration certificate must be proactively renewed before expiration, and one cannot just wait for the tax authority to notify All business documents must be kept for at least 7 years for tax authority audits The year-end date involves tax filing deadline classification and audit scheduling, so it is advisable to confirm as early as possible Company…

Unlimited companies are exempt from audit and only need to pay profits tax. Sole proprietorships fill out BIR60; partnerships fill out BIR52. If the turnover exceeds HKD 2 million, financial statements must be submitted together. Key summary Tax rate benefits: Implement a two-tier profits tax system The profits tax rate for the first HKD 2 million is only 7.5%, and thereafter it is 15%. Tax forms are sent out around April each year, and can be filed in paper or electronically. Sole proprietorships fill BIR60; partnerships fill BIR52. Office rent, salaries, etc. are tax-deductible. Owner's salary, personal expenses, and fines are not tax-deductible. Unlimited companies need to pay...

Hong Kong tax filing services cover account organization, audit coordination, and profits tax declaration, with a professional team assisting in calculating taxes, submitting audit reports, and responding to tax bureau inquiries, reducing the risk of errors and late submissions for businesses. Key Summary Tax filing services include tax calculations, filling out various tax forms, and following up on correspondence from the tax bureau. Engaging professional services can save time, reduce risks, and optimize taxes. Engaging professional institutions can include the "bulk extension plan," legally extending the tax filing deadline. For limited companies, those with frequent transactions, financing needs, or unfamiliarity with tax regulations, it is recommended to engage agency services. The fee standards depend on the type of company, turnover, number of documents, and whether it involves back accounting.

Hong Kong accounting services assist companies in organizing accounts, preparing financial statements, tax filing, and payroll management. Outsourcing professional accounting can save costs and risks, ensuring compliance and financial transparency, suitable for SMEs. Key Summary Covers daily bookkeeping, statutory financial report preparation, tax calculations, and payroll MPF organization. Outsourced services offer the best cost-performance ratio. Quotes depend on the number of documents, type of company, and completeness of accounts. Unclear accounts may face tax bureau estimated tax penalties and bank account freezes. Lost documents can be remedied through bank records. What items are included in accounting services? Operating a company in Hong Kong, regardless of size, requires…

Hong Kong limited companies must undergo an audit every year, with services covering statutory audit reports, profits tax calculations, and tax form submissions. Audit fees depend on the size of the company, business complexity, and completeness of accounts. Key Summary Financial statements of the company are audited by qualified auditors, issuing statutory audit reports. All Hong Kong limited companies must undergo audits and tax filings annually. Service outputs: statutory audit reports, profits tax calculation forms, and tax forms submitted on behalf. Required documents: bank statements, purchase and sales invoices, expense receipts, and various contracts. Failing to conduct an audit may result in tax bureau penalties, compulsory estimated taxes, or affect bank account operations. What is an audit? In Hong Kong…