account bookkeeping, audit and tax filling for Hong Kong company

account bookkeeping, audit and tax filling for Hong Kong company發布自COLVASS CONSULTING LIMITED

關鍵字 Bookkeeping, Accountants, Hong Kong offshore income exemption

Hong Kong company law and tax law required all the company registry in Hong Kong must keep proper business transaction records and accounts for all businesses so as to ascertain the true figures of incomes, losses or expenses.


Basically Hong Kong Inland Revenue Department charges tax on any profits "arising in and derived from Hong Kong". In other words, if the business activities are not occur in Hong Kong, the profits are not chargeable to Hong Kong profits tax. The strong leading cases such as Hang Seng Bank case and HK-TVB have ruled out that offshore profits are tax free. Hong Kong only charges local profits tax, not offshore profits tax.


Hong Kong Company law S.121 requires the Hong Kong company to keep proper books of accounts and financial statement. S.131 of Hong Kong Company law requires an auditor to be appointed annually to audit the financial statements and issue an auditor report.


The audited account statements and audit reports are required to prepare before the Annual General Meetings (AGM) for sharehoders to discuss and get approval. An audited account is also required to file to the Hong Kong Inland Revenue Department (IRD) for tax declaration.


For Hong Kong company whom profit not sourcing from Hong Kong, there is should be reported to the IRD and request to claim exemption of profits tax. Under the general procedure works, the IRD will issue a notice for require an evidence that the profits are not subject to Hong Kong profits tax. Government has your proven records that your huge money comes from legal business.


The consideration of offshore tax exempt or not is on "totality of fact". No one single factor will dominate. Therefore, planning in advance is very important. Otherwise, you may have difficulty in getting enough proof to support the tax exempt claim. Those proof include:

   1.      the contract is not signed in Hong Kong;

   2.      the contract is not executed in Hong Kong;

   3.      goods is not supplied via Hong Kong;

   4.      business is conducted by staff outside of Hong Kong; etc.


For prepare the account bookkeeping, annual audit report, tax filling for your Hong Kong, please feel free to contract us.

關鍵字 Accountants, Bookkeeping, Hong Kong offshore income exemption, tax filling for Hong Kong company,