Corporate Services
Corporate Accounting and Tax Services
Our professional accounting team provides you with Hong Kong company accounting services, tax filing services, auditing services and offshore tax relief applications. Our team of professional services with a systematic process, rigorous and reliable work, trusted by customers and loved by you, is worthy of your trust accounts team.
Accounting and bookkeeping
For business operators, accounting is a crucial component of operational management and strategic planning. Whether your company is in its initial stages or already established, our comprehensive accounting services can meet your diverse bookkeeping needs across all levels—from preparing regular financial reports and adapting to the latest accounting standards to effectively managing your company's financial performance.
Tax Planning
We have a thorough understanding of our clients' businesses and their specific requirements, enabling us to provide comprehensive tax services. Our professional tax advisors will work closely with you to gain deep insight into your company's future development direction, thereby assisting you in formulating strategic tax planning to maximize tax benefits within Hong Kong.
Accounting and Tax Services Package
Depending on each company's specific financial and tax circumstances, we require you to provide complete and detailed documentation and information for reference so that we can prepare a comprehensive quotation.
Fundamentals of Accounting and Taxation
Advanced Accounting and Taxation
Any questions?
Frequently Asked Questions
What is the annual tax for a Hong Kong company?
A Hong Kong company is only required to pay profits tax, which is calculated on the basis of 16.5% (2007/08:17.5%) of its profits. If the company does not make any profit, it does not need to pay profits tax.
When is the year-end of a Hong Kong company?
It is customary to use either March 31 or December 31 of each year as the tax base period. The maximum base period for the first year of a Hong Kong company is 18 months.
Does Hong Kong need to impose tariffs on imports and exports?
There is no tariff on general import/export goods, except for tobacco, alcohol and petroleum. However, imports and exports must be declared at customs.
How many types of taxes are there in Hong Kong?
There are three types of taxes in Hong Kong: Profits Tax, Salaries Tax and Property Tax. Profits tax is 16.5% (2007/08: 17.5%) of a company's assessable profits; salaries tax is calculated on the basis of salary income at progressive rates, subject to a ceiling of 15% (2007/08: 16%) of total salary income; and property tax is calculated on the basis of the rental income of the property owned, less a standard deduction of 20% for repair and expenditure, and 15% (2007/08: 16%) of total salary income. Property Tax is calculated on the basis of rental income from property ownership after deducting the standard allowance of 20% for repairs and expenses at 15% (2007/08: 16%).
How is the accounting year (basis period) of Hong Kong formulated?
The Base Period is one of the following periods:
March 31 or December 31 is the more common year-end.
Other months may be designated as year-end
What are the restrictions on deduction of donations under the Hong Kong Inland Revenue Ordinance?
Deduction is allowed for donations to recognized charitable organizations. However, the total amount of donation must not be less than $100 and not exceed 35% (2007/08: 25%) of assessable profits.
Can the profits of a Hong Kong company make up for the losses of the previous year?
Losses incurred in a taxable year can be carried forward and used to offset the company's profits in subsequent years.
What is Provisional Profits Tax?
Profits tax is levied on the actual profits for the year of assessment. As the profits for a particular year can only be ascertained after the end of that year, the Inland Revenue Department (IRD) will levy provisional tax before the end of that year. In the following year, when the profits for the year have been assessed, the amount of provisional tax paid can be used to pay the profits tax payable for that year.
Under what circumstances can a Hong Kong company be exempted from profits tax?
If a company's profits are not derived from Hong Kong, and the company has not yet set up an office in Hong Kong or employed Hong Kong employees, the profits earned will be exempted from profits tax.
My Hong Kong company only has a bank account and receives bills for other Chinese companies, does this Hong Kong company need to handle accounting, auditing and tax reporting?
Required. Since a company is formed to make a profit, even if a Hong Kong company can only fulfill the obligation to receive and pay others, it is likewise regarded as a business of agency services, the income of which is the pecuniary transactions such as receipts and payments brought about by others.
Our company has only opened accounts with foreign banks in China but not in Hong Kong, so is it true that the business of our company is not required to file tax returns in Hong Kong?
No. Under Hong Kong law, all Hong Kong companies are obliged to declare their financial position to the Inland Revenue Department (IRD), regardless of whether their business takes place in Hong Kong or not. If the company has no source of income in Hong Kong, it can apply to the Inland Revenue Department for tax exemption.
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